For many Americans, the goal of financial stability has gradually become out of reach, especially under the heavy burden of credit card debt. A recent report released by Edelman Financial Engines reveals a sobering fact: credit card debt has become the main obstacle to wealth accumulation for 39% of adults, and the total credit card debt of Americans has climbed to an unprecedented $1 trillion, which undoubtedly sounded the alarm for the financial health of American society.

According to the latest quarterly report on household debt and credit released by the Federal Reserve Bank of New York, in the third quarter of 2023, Americans' credit card debt has reached $1.08 trillion, an increase of $48 billion from the previous quarter and a surge of $154 billion year-on-year. This is the largest year-on-year increase since the Federal Reserve Bank of New York began recording the data in 1999. This astonishing growth not only reflects the helpless choice of American consumers in the face of economic pressure, but also reveals the fragility of household finances in a high-interest rate environment.

The reason why credit card debt has become a stumbling block to wealth accumulation is largely due to its high interest rate. In the United States, credit card annual interest rates often exceed 20%, which means that even the smallest debt can quickly expand, trapping consumers in a vicious cycle of "paying more and more". Under the double blow of continued inflation and high interest rates, more and more families are finding it difficult to make ends meet, let alone repay these high credit card debts.

The surge in credit card debt has also brought another serious problem - delinquency and default. According to the report, the rate of households delinquent or seriously delinquent (90 days or more behind) debt has reached its highest point since the end of 2011. It is particularly noteworthy that the growth of delinquent debt is most obvious among people aged 30 to 39. People in this age group are often the breadwinners of the family, and their financial difficulties affect not only themselves, but also the entire family and even society.

Credit card debt not only erodes consumers' cash flow, but also seriously hinders their wealth accumulation process. Author Robert Kiyosaki once profoundly pointed out that assets are what you put into your pocket, while liabilities are what you take out of your pocket. High-interest credit card debt is just such a typical liability, which constantly consumes consumers' income, making it difficult for them to make long-term investments and savings, and thus unable to achieve financial freedom.

Faced with the threat of credit card debt, American consumers need to take active countermeasures. First, it is crucial to develop a reasonable debt repayment plan, giving priority to repaying high-interest credit card debts to reduce interest expenses. Second, avoid unnecessary consumption and loans, learn to use credit reasonably, and avoid falling into the dilemma of "debt to support debt". In addition, it is also essential to enhance financial awareness and improve personal financial management capabilities. Through learning and practice, consumers can manage their finances more wisely and avoid repeating the same mistakes.

Credit card debt has become one of the biggest threats to wealth accumulation in the United States. It not only erodes consumers' economic foundation, but also affects their quality of life and future development. However, by taking effective financial measures, it is entirely possible for consumers to break free from the shackles of credit card debt and achieve financial freedom and stability.