The summer of 2023 saw a new record as Americans surpassed an astonishing $1 trillion in credit card debt, according to the Federal Reserve Bank of New York. The coupling of both high interest rates and inflation are taking a toll on households across the country and across all income levels. In today’s financial landscape, the increase in credit card debt has emerged as a significant concern for individuals and families who are facing increased financial hardships. 401K accounts are also seeing hits as hardship withdrawals have increased by 36% since Q2 2022, according to a Bank of America analysis.
As a credit union, you distinguish yourself as a community-focused institution that aims to benefit its members. Since your institution prioritizes the financial wellbeing of its members over profit maximization, your mission and services make your credit union well-positioned to help guide its members through turbulent times. Here are some ways you can significantly contribute to helping your members confront the rise of credit card debt.
As a credit union, you are infamously known for being committed to enhancing the financial literacy of your members. With comprehensive financial education programs, workshops, and resources, you’re able to equip individuals with the knowledge and skills needed to make informed decisions regarding credit card usage and debt management. This opportunity to become a trusted partner and advisor for your members is priceless.
Also offering personalized financial counseling services helps your members devise effective debt repayment plans. These counseling sessions offer guidance on budgeting, saving, and implementing strategies to reduce debt.
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