As of early 2025, the U.S. economy is showing signs of stagflation—a period marked by slow growth and rising inflation. Recent data indicates that core inflation has increased by 2.8% annually over the last 12 months, while GDP growth is projected to contract at a 2.4% annual rate. ​Sources: U.S. Inflation Calculator, Bureau of Economic Analysis

In this challenging economic environment, managing personal debt becomes increasingly difficult and even more important. Credit card balances have reached a record $1.17 trillion in the third quarter of 2024, up from $770 billion in the first quarter of 2021 Source: CBS News. Many Americans are struggling to make minimum payments, with the share of active credit card holders making only minimum payments hitting a new high of 10.75%. ​Source: Federal Reserve Bank of Philadelphia

Understanding the Impact of Stagflation on Personal Finances

Stagflation affects your finances in several ways:​

• Reduced Purchasing Power: As prices rise, your money doesn’t go as far, making it harder to cover everyday expenses.​
• Higher Interest Rates: To combat inflation, the Federal Reserve may increase interest rates, leading to higher costs for borrowing.​
• Job Market Uncertainty: Economic stagnation can lead to job losses or reduced income, making it more challenging to manage existing debts.​
  

Strategies for Managing Debt During Economic Uncertainty

With all these challenges, it’s even more crucial to adopt effective strategies for managing debt:​

• Assess Your Financial Situation: Take stock of your income, expenses, and total debt to fully understand your financial standing.​
• Prioritize High-Interest Debt: Focus on paying down debts with the highest interest rates to reduce the amount of interest you are paying, and lower the overall cost of borrowing.​
• Create a Budget: Develop a realistic budget that accounts for essential expenses and allocates funds toward priority debt repayment.​
• Seek Professional Assistance: Consider consulting with financial advisors or debt relief professionals to explore customized options tailored to your situation.​
  

How American Credit Card Solutions Can Help

American Credit Card Solutions offers a debt relief program designed to provide immediate financial relief by lowering your monthly payments. This program works by negotiating with creditors to reduce the total amount owed, allowing you to pay off your debts more quickly and with manageable payments.​

Benefits of the Program Include:

• Lower Monthly Payments: Adjust your payment plan to fit your current financial situation.​
• Reduced Total Debt: Negotiate with creditors to decrease the overall amount you owe.​
• Avoid Bankruptcy: Find an alternative solution to manage your debts without resorting to bankruptcy.​
  

Taking the Next Step

If you’re struggling with debt amid economic uncertainty, consider reaching out to American Credit Card Solutions for a free consultation. Our team can help you develop a Custom Debt Relief Plan to regain control of your finances.​ Request one here or speak with a certified debt specialist at 877-820-2954​.

Taking proactive steps now to take control of debt can help you navigate challenges and work toward a more secure financial future.