- Local experts are saying that the COVID-19 pandemic is what started increasing debt.
- One neighbor in Holt says budgeting has gotten harder since inflation.
- Video shows tips from MSUFCU experts on how to reduce your debt and prevent future debt.
(The following is a transcription of the full broadcast story)
Everyone is feeling the stress of inflation, no matter where you go, resulting in the highest credit card debt we've seen in over a decade, according to the Federal Reserve Bank. I spoke with local officials who told me what you can do to reduce your debt and how to prevent more.
"Credit cards can be a great tool to manage your finances as long as you're doing it appropriately," said Allison Horn.
Appropriately is the keyword.
Neighbors across Mid-Michigan are facing credit card debt. According to the Federal Reserve Bank, this quarter alone, credit debt rose more than 10%, the highest in over a decade.
One local official at Michigan State University Federal Credit Union says it's been getting worse since COVID.
"Of course the increase of inflation. Our members, like everybody else, are experiencing tighter budgets due to rising consumer costs," said Horn.
Allison Horn says one of the ways that neighbors can go about preventing debt is by paying attention to the inflows and outflows of cash in your accounts.
"Not enough people are paying close attention to what's coming in and then their expenditures each month," Horn said.
In terms of tackling debt, Horn says to use the tools available consistently, whether it's through your bank or through a budgeting app.
"Utilize them with consistency and with intention," she says.
But one Holt neighbor says it's become tougher because of inflation and can understand why debt has increased.
"Budgeting has become difficult because of those price changes," said Nolan Coolidge.
And now for neighbor Nolan Coolidge, he has more to worry about as he has a newborn.
"We would have been able to afford things much better 5 years ago," he said.
Horn says that although the challenge will remain for neighbors across Mid-Michigan, it can become easier when you buckle down on your budget.
"It's not a one-size-fits-all, but what would be most important is that someone is being realistic about their budget, how they can manage it, and that they seek out the products and services that'll be personal to them," said Horn.
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