Mom Racks Up $30,000 in Credit Card Debt Just Paying 'for Our Needs'

While it might seem unfathomable to some, one millennial woman has shared how she accidentally ended up with $30,000 in credit card debt.

Debt is affecting Americans all across the country, with analysts estimating it grew by roughly 5 percent in the third quarter of 2023 alone. And with an average credit card rate of more than 27 percent, many Americans are crumbling under the pressure of the national card balance of $1.8 trillion.

In December, only half of Americans said they would be able to pay off their credit card bills, according to the LendingTree Credit Card Confidence Index.

To 30-year-old Kate Hindman, the woman behind the @LeftistMommy TikTok account, the numbers are not all too surprising. She told Newsweek that debt is a "booming trillion-dollar industry."

Hindman, who lives in Los Angeles, wound up $30,000 in credit card debt after the pandemic, as she revealed in a new video.

Before the coronavirus, she and her husband would usually have $2,000 on their credit cards at any given time, but they were constantly making payments.

"Our monthly payments were $100 a month, and it really didn't make or break us," Hindman said. "Then the pandemic happened, and my husband lost his salary."

Learn more: How Does Credit Card Interest Work?

As the couple made less money during that time, everything became incrementally more expensive, Hindman added. She had a baby and couldn't return to work for a year. To navigate this situation, she put all of their basic expenses besides rent on the cards.

"I grew up very comfortably middle class, so I do tend to think that spending money on things like a dance class or experiences is normal, but I've completely walked that back since everything's become so expensive," she said. "Truly, we have not done anything outside of just pay for our needs."

Despite this conservative view of money, the debt has piled up, with Hindman saying the couple is $30,000 in debt, which has now turned into loans of roughly $1,200 a month.

The response to Kate's video has been mixed, with some saying the family spent outside of their means and then reaped the consequences.

"As someone who used to be broke broke, I don't understand the 2k for 'extras' like eating out or concerts," one user commented.

Another said: "I truly mean this respectfully and politely but y'all be living beyond your means and spending more than you make is wild and reckless."

Still, others were sympathetic to Hindman's story, acknowledging how an unplanned life change can render your previous financial situation impossible.

"People don't realize they are one life change away from this happening. No one is above it. My husband had lost his job too- I get it," one supportive TikTok user wrote.

To Hindman, the criticism is reflective of people not understanding the specific situation her family faced.

"I think a lot of people watching it are getting hung up on the first part where I said we always had some debt," Hindman told Newsweek. "But really, the $30,000 is from my husband losing his salary during 2020."

When it comes to advice for others trying to avoid the situation Hindman now finds herself in, it's a complicated question to her.

"I think people are having to make these difficult decisions based on the cost of living and low wages," she said. "I support student loan and medical debt forgiveness. Debt in America is a booming trillion-dollar industry. Thankfully, we were able to rise above, but not everyone has this privilege."

A Larger Debt Problem

While Hindman represents just one family of many, Americans are engaging with a nationwide problem of debt.

In 2023, more than half of Americans' financial situations worsened, according to a study from Intuit Credit Karma. For most, financial setbacks were the result of unexpected expenses like medical bills or rent increases (23 percent), income reductions (19 percent) and depleted savings (16 percent.)

Overall, 46 percent of Americans said they expected to have credit card debt heading into 2024, with a quarter of those reporting $10,000 or more hanging over their heads.

"People often find themselves in credit card debt unintentionally due to a combination of factors, including overspending, lack of budgeting, unexpected expenses, high interest rates, and a reliance on credit for emergencies," WalletHub analyst Cassandra Happe told Newsweek. "Failure to track expenses and understand the terms of credit cards can contribute to accumulating debt without proper planning."

Even extra charges on things as small as a dinner out or an extra pair of shoes can add up and begin to eat away at your credit, according to Josh Michaels, the CEO and finance specialist at Money4loan.

"Often, it starts with small purchases that snowball over time, especially when paired with high interest rates," Michaels told Newsweek.

While facing higher monthly payments and interest charges strains finances in the short term, it also can lead to long term damage, like a tarnished credit score that stops you from being able to buy a house or rent an apartment.

The main way to avoid this concerns careful budgeting, Happe said. And that also means having an emergency fund for unforeseen costs that could emerge if you do end up losing your job or taking on an unexpected major expense.

"For those in this situation, the first step is to assess the total debt and create a structured repayment plan, focusing on high-interest cards first," Michaels said. "It's crucial to explore consolidation options, like a balance transfer card or a personal loan, for lower interest rates."