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The Covid-19 pandemic separated the haves from the have-nots when it comes to finances.
Research shows that direction is continuing when it comes to debt, particularly credit cards.
More than one-third of Americans — 35% — say they are move their highest level of debt ever or close to it, according to a Northwestern Mutual survey of 2,740 adults.
The top origin of personal debt, excluding mortgages, is credit card debt, with 28% of respondents, the research found.
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On the other hand, 43% of adults with personal debt say those balances are at their lowest level constantly or close to it.
The results reflect the aftermath of the Covid-19 pandemic that posed financial challenges for some, such as decreased or lost employment, and reduced financial pressures for others, with lower mortgage rates and the pause of federal trainee loan payments, noted Alap Patel, a Chicago-based wealth management advisor at Northwestern Mutual.
“We were all in the anyhow storm, but not everyone was in the same ship,” Patel said.
Credit card interest rates at record highs
With federal devotee loan payments