More and more Americans are racking up credit card debt to make ends meet, but Bank of America CEO Brian Moynihan says there's another reason they're doing it: For many, it's lifestyle maintenance.
“It's hard to cut back on expenses and it's hard to reevaluate your needs and wants,” says Bill Dendy, a Texas-based CPA and certified financial planner, “and many people have had to just go ahead and turn to savings or credit cards.”
Unfortunately, while prices have soared under the Biden-Harris Administration, wages have not kept up. It's basic math.
“Across the board, people are seeing prices go up 20 to 25 percent,” Dendy told KTRH, “and for a lot of people, their incomes didn't go up 20 to 25 percent, and all that money was already spent.”
Ultimately, many Americans may need to stop trying to keep up with the Joneses.
“The real answer is good old-fashioned budgeting and planning,” Dendy points out. “Budgeting and planning may seem uninteresting to most people, like dieting and exercising, but a lot can be solved by going back to basics.”
Recent data shows consumer spending has fallen this summer, but people are still spending money on restaurants and travel.
