Idaho Faces Credit Crisis: High Delinquency Rates, Mounting Debt
Unfortunately, Idahoans and Americans do not have the same rules as the federal government regarding their debt. As we've seen for years, the federal government hasn't balanced a budget, and our deficit continues to grow. Military leaders and elected leaders say our growing debt threatens national security. We do not have the luxury of expanding our spending limits on consumer debts.
With the exception of Dave Ramsey, most of us use credit cards to navigate our consumer spending. Sometimes, we're wise with our spending and, unlike the government, manage our debt effectively. On the other hand, it's common for most folks to spend more than they earn and struggle to pay off their credit cards.
Although no one likes reckless spending, credit card interest rates are exceedingly high. Paying off any card is challenging when the interest rate exceeds twenty-five percent. Can't banks and credit groups make enough money by charging a lower interest rate?
A new report reinforces the troubling details that many in the Gem State are making the minimum payments on their credit cards. A minimum payment doesn't help the lender pay off the loan; it only lengthens the pain.
WalletHub reports that Idahoans have credit issues. They detail that from 2022 to 2023, it had the sixth-highest increase in the country's delinquency rate. Our state was only behind Oregon, Wyoming, Alaska, Utah, and Hawaii.
Idaho's high cost of housing and inflation are a few reasons for the increase. A loss of free COVID money is another factor in the massive growth. Credit card interest rates have risen in response to the Fed raising rates. We'll continue to update you on this story as it develops.
The total amount of credit card debt recently exceeded over a trillion dollars. A new record for consumer debt.
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