I looked at the small pile of groceries on the conveyor belt. “How on earth is this $75?”

A lot of us are feeling that way today as prices go through the roof. And I’m one of the lucky ones — for me it’s just an annoyance.

But for many people, this is a crisis.

The Consumer Debt Pinch

Consumer debt has jumped almost 20% in just the last 3 years, according to a report from the Federal Reserve.

And if that wasn’t bad enough, interest rates on that debt are also through the roof! The average credit card rate has jumped from 16 to 22% in the last 3 years for cards with finance charges, per WalletHub.

Economic Effects

If the average person is hitting his financial limits, he will reduce spending. This could hurt the economy later this year and into 2024.

Consumers may get some help from falling interest rates, however. The Fed seems to be near the end of its tightening cycle and could lower rates in the next few quarters.

How Do We Fix It?

I come at this problem from a technology angle, the way I do with most every problem.

There are ways for people to better manage their debt. But they’re hard to access.

Lots of credit cards offer 0% interest rates on balance transfer. Taking your rate from 22% to 0% makes it a heck of a lot easier to pay that card off!

You can also negotiate with creditors to lower balances or get more time to pay.

If there’s so much help out there, why is it so hard to find?

That’s why I’m interested in technology to help people manage and reduce debt. With Americans owing about a trillion dollars on their credit cards, this is a huge market.

It’s also a great opportunity to help people.

Is the cost of living hitting people you know? Leave a comment and tell us!

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More on markets:

Why AI Won’t Cause Mass Unemployment

Will CRE Cause a New Regional Banking Crisis?

Druck on the Coming Debt Crisis

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