Learning The Facts About Credit Card Debt
Learning the facts about credit card debt, how you get in and out of debt can make it that much easier for you to be able to manage your finances effectively. Not only that but knowing the facts about credit card debt can help you to stay out of debt before you ever get in.
The Facts About Credit Card Debt - Credit Card Statistics
A few facts about credit card debt may help you to think twice before swiping that card or paying for something you know you cannot afford because it is on credit. The average card has about $1000 on it, making just the 2% minimum payments most people make it will take about 22 years to pay that off with an additional $2300 tacked on for interest. That means you will pay $3300 just to pay off that original $1000 purchase.
The average American household however has close to $8400 in credit card debt, which means most people do not even finish paying off their credit card debt within their lifetime if they are making only the minimum 2% payments. These are just a few of the facts about credit card debt that should have you thinking twice before pulling out the plastic.
Knowing just what credit card debt can do to you and knowing the facts behind it can make it easier to avoid the pitfall of ending up in credit card debt. Getting into credit card debt is not hard; in fact, it is very easy to fall into the trap of purchasing things on credit. However, by keeping these important facts in mind you can curb the impulse and be more careful with spending habits.
Other facts about credit card debt are make sure to pay more than the minimum in order to pay your credit card debt off faster and if you purchase only what you know you can pay off with in a month or two at the most in full you can avoid having credit card debt completely.
Because of credit spending, most American's with credit card debt are actually spending more than they make in a year. That adds up to serious trouble when it comes to credit card debt. Take the time to learn about how to manage your credit in order to prevent credit card debt from affecting your financial situation and life. It does not take long and it will make a world of difference.
