The Average Credit Card Debt In US - A Growing Problem
The average credit card debt in US is growing larger and larger by the day and year. It is a problem that is creating serious financial issues not just in the credit card market but in other markets as well. The average credit card debt in US numbers also have an effect on things like mortgages, bankruptcy, foreclosures, and car and school loans. As the average credit card, debt in US grows more and more people are turning to things like debt consolidation and other more drastic means of fixing their credit and getting back their financial lives. If you think the average, credit card debt in US is not as bad as it may look. You may want to take a look at these numbers.
Average Credit Card Debt in US - The Facts
Let us take a look at some of the numbers that are appearing when dealing with credit. The average credit card currently has a balance of around $1000. On this $1000, if only the minimum 2% payments monthly are made it would take 22 years plus an additional $2300 in interest in order to pay the debt off.
The average American household is looking at almost $8500 in credit card debt as a national average. However, the average credit debt among those who have at least one card is over $9000. That means since 1990 the average credit debt has tripled in size.
If you are wondering, what you spend in interest or even if you have not worried about until now, the average American spends more than $1200 a year in just interest payments alone. That is more than most mortgage payments and rents for a single month. Worried about making the mortgage, this may give you pause for thought.
On average, the interest rate for credit cards is 18.9% and it is going up. Some cards have introduction rates of as high as 23% and as much as 30% for those with damaged credit. 50% of Americans would never tell a friend how much they own in credit card debt, 23% have maxed their cards, 13% are late 30 days on payments within the last 12 months, and 11% admit their cards when into collections.
This is a growing problem that is having an effect on a variety of different industries. It has an effect on the real estate and auto industry as well as banking, savings, and the stock market. Poor credit management is an economic problem.
