Rising Household Debt Is Putting the American Dream on Hold

America’s household debt has reached historic levels—and it’s increasingly standing between millions of Americans and homeownership. With credit card balances topping $1.23 trillion and more families relying on debt just to cover basic expenses, Tim Lucas and Craig Berry break down what the latest Federal Reserve data reveals about consumer borrowing, debt-to-income ratios, and why buying a home is getting harder even for working households.In this episode you’ll learn:How big the debt problem really is: Credit card debt alone has surged to $1.23 trillion, having continued to rise over the last year.Why emergencies trigger debt: Nearly 60% of Americans can’t cover a $1,000 surprise expense without borrowing.The rise of debt for necessities: About 31% of Americans are using buy-now-pay-later services to pay for groceries.How debt blocks homeownership: High credit card, auto, and student loan balances push debt-to-income ratios beyond mortgage limits.Why this isn’t about bad budgeting: Many borrowers are working multiple jobs and still falling behind as costs outpace wages.The role of new credit products: Earned wage access and BNPL make debt easier to access but harder to escape.The bigger picture: Why America’s debt crisis reflects systemic economic strain, not just personal financial choices.Read the full article: https://www.mortgageresearch.com/articles/americas-household-debt-problem-poses-real-threat-to-prospective-homeowners/