Prepare for an impending consumer crisis of monumental proportions.

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Amidst the economic tumult, a staggering figure looms large—the nation’s credit card debt surges past an alarming $1.1 trillion mark, shackling consumers with interest rates soaring above 25%. This financial burden weighs heavily on households, threatening their financial stability.

As the relentless march of inflation erodes purchasing power, savings rates plummet to a mere 3.2%, the lowest recorded since November 2022. This precipitous decline underscores the grim reality facing American households, grappling with diminishing resources amidst rising costs.

Against this backdrop, spending outpaces income growth, exacerbating the strain on already stretched budgets. In a concerning trend, credit card delinquencies rise, with almost 3.5% of balances at least 30 days past due, the highest level in the data series since 2012, up by approximately 30 basis points from the previous quarter.

The erosion of savings and the escalation of credit card debt paint a dire picture of the consumer landscape, where financial resilience is tested to its limits. As the economy teeters on the brink of crisis, these numbers serve as a stark reminder of the urgent need for sustainable solutions to alleviate the burden on struggling households.

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