LendingTree credit analyst Matt Schulz discusses Americans’ credit card spending during the holiday season, arguing that people are running their businesses well despite inflation and rising interest rates.
Month after month of high inflation has pushed Americans to rely on credit cards to make ends meet, stressing balances all the time. Currently, many consumers are seeking help in improving their credit.
The chairman of Debt.com Howard Dvorkin, who has been in the debt relief business for 30 years, said that the demand is increasing on the business from last year.
America’s household debt is mounting, resulting in more consumers flocking to relief agencies. (iStock / iStock)
“All of a sudden, someone turned a switch in June,” Dvorkin told FOX Business. “The demand came and it hasn’t stopped.”
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Dvorkin said he has hired 40 more operators in the past two months to handle the increased volume. He said that consumers are concerned, and he expects the pain to remain throughout the year and possibly into 2024 due to the state of the economy.
“I don’t think it’s going to be as bad as the Great Recession,” Dvorkin said, “but it’s definitely going to hurt the building.”
Americans are increasingly dependent on debt as inflation strains household budgets. (Simon Dawson/Bloomberg via Getty Images/Getty Images)
Dvorkin said the US has been in a recession for a long time now and it will start to show its teeth, soon. CPA’s by trade advise anyone who is in debt to seek help as soon as possible before they leave.
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Lenders have warned that as demand continues to increase in the industry, the number of fraudsters who try to take advantage of people in dangerous situations will also increase. He encouraged customers to do their homework and be sure to work with a reliable service.
The rise in consumer debt has caused the debt relief industry to grow. (iStock / iStock)
Some people, he said, are strong enough to solve their debts without help, but the first step for anyone is to assess where they are and make a plan. Ignoring the problem will only make it worse as the debt continues to grow.
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“People are going to be hurt — they’re hurting right now. The smart people are reaching out for help,” Dvorkin told FOX Business. “People can get help, but … the knot is getting tighter and people are going to start choking. Do I think it’s going to be bad? No, but people are going to choke? Yes, I do.” believe that.”
