U.S. consumer debt surpasses $17 trillion

The pursuit of the American dream remains a fundamental goal for millions of individuals in New York City. However, an alarming trend of mounting credit card debt is putting this dream at risk. 

Total consumer debt in the U.S. surpassed a historic $17 trillion in the first quarter of this year, with nearly $1 trillion of that amount racked up on credit cards.

"The people that are carrying credit card debt from month-to-month. The average interest rate is a record high 20.33 percent. It’s really hard to build wealth when you’re sending that much to the credit card company every month," said Ted Rossman, a senior industry analyst.

Rossman told FOX 5 New York that the historic hike in credit card debt could put that American dream on pause.

"It’s definitely going to be harder to do things like buy a home let’s say if you have a substantial amount of credit card debt could also make it more difficult to get a car loan," he said.

Borrowers' inability to make minimum monthly payments is a major red flag Rossman says.

Making minimum monthly payments for the average borrower with about 57 hundred dollars in credit card debt leads to paying over 8 thousand dollars in interest alone in a 17-year period.

Rossman's advice to those struggling month-to-month?

"Get a zero percent down transfer card, pause that interest for up to 21 months, maybe consider taking on a side hustle or selling stuff you don’t need and cutting your expenses," Rossman said.

The key s is keeping your focus and momentum.

"I feel like once you start moving in the right direction you can realize that you can pay this off. I mean it might take a little bit of time. I think it’s really important to come up with a plan," he added.

If you owe more than 5 thousand dollars in credit card debt, the expert says you might be a good candidate for nonprofit credit counseling.

Different agencies can negotiate lower interest rates on your credit card debt helping you eliminate that debt a lot faster.