More families owe more debt than income, CFPB offers advice

WRAL reported that an increasing share of American families owe more debt than they earn in wages, with 8.6% having debt-to-income ratios above 40%, according to the Federal Reserve.

This situation leaves less money available for essentials such as groceries, utilities, emergencies, and savings, WRAL noted.

The Philadelphia Fed found that credit card balances rose 3.4% year over year in the second quarter of 2026, even as carry-over balances slightly declined by about 1.5%.

The Consumer Financial Protection Bureau recommends that individuals struggling with debt contact their credit card companies to discuss payment options that protect their credit standing.

Nonprofit credit counselors can assist in managing debt and negotiating better terms, usually without charge, while the bureau cautions against for-profit debt relief companies that require upfront fees.

This information is relevant to Raleigh-area residents facing financial challenges, as managing debt responsibly can help avoid worsening financial situations.