Americans Are Using More Credit As Prices, Interest Rates Rise

The video discusses the rise in credit card debt due to inflation and interest rate hikes, with Americans owing over $885 billion. It highlights the challenges of repaying debt due to high interest rates and offers financial advice to cut costs. The video also warns of a potential recession in the next 12 months, urging viewers to get financially fit.

What is one of the main reasons Americans are accumulating more credit card debt?

• To buy luxury items

• To invest in stocks

• To pay for essential expenses

• To travel more frequently

What is the average interest rate on American credit cards as mentioned in the video?

• 15.5%

• 22.21%

• 18.9%

• 25.3%

Why is it difficult to pay off credit card debt once it accumulates?

• Because of the low interest rates

• Due to the power of compound interest

• Because banks do not allow early payments

• Due to frequent changes in billing cycles

Which of the following is a suggested method to reduce expenses?

• Dining out more often

• Making coffee at home

• Increasing the number of streaming services

• Buying more luxury items

Why is it particularly important to get financially fit now, according to the video?

• Because interest rates are expected to drop

• Due to a decrease in inflation rates

• Because credit card companies are offering rewards

• Due to predictions of an upcoming recession