The National Financial Educators Council said average losses last year stemmed mainly from credit card interest, overdraft fees and underestimated vehicle ownership costs.
With many card rates above 20%, experts said carrying balances can quickly snowball, while the Consumer Financial Protection Bureau has previously put overdraft and non-sufficient funds fees at $17 billion.
The report said confusion over terms such as APR, equity, principal and yield can drive costly borrowing decisions, and urged consumers to monitor accounts, read fine print and build basic financial literacy.
As consumer debt hits an all-time high, what tangible protections can regulators offer beyond just more education?
Is financial illiteracy a personal failing, or the result of a system designed for consumers to fail?