Debt | Credit Card Topics

Debt Dedication: The Average American Prepared to Work Over 6 Hours Overtime to Pay Off Credit Card Debt

By: Jon McDonald, 9/9/2024

For millions across the U.S., credit card debt is a daily burden. Whether it stems from a little too much indulgence in shopping or the need to manage unforeseen expenses, credit card debt often accumulates before one realizes it. But what if the stakes were higher? What would you do to wipe the slate clean? How many additional hours would you work, and what sacrifices would you be willing to make to achieve that coveted debt-free status? We recently commissioned a survey of 3,000... read more »

What Is Debt-to-Income Ratio? How This Percentage Affects Lending & Credit Decisions

By: Eric Bank, 7/18/2024

Your debt-to-income (DTI) ratio summarizes how much of your monthly income you use to pay off your debts. Issuers check this number to see if you’re a suitable candidate for a credit line. This ratio doesn’t affect your credit score directly, but it shows how well you manage your debts. Simply put, lenders use your DTI ratio to judge your ability to comfortably pay your debts every month. Navigate This Article: DTI Ratio Basics ... read more »

Should I Use Home Equity to Pay Off Credit Card Debt?

By: Marcie Geffner, 12/14/2023

Homeowners may be tempted to tap their home equity to pay off their card debt. After all, home prices have skyrocketed, and interest rates for home loans are higher than they were yet still lower than most credit card rates. But should they? The answer isn't as obvious as it may appear. You Would Put Your Home at Risk A home equity loan or home equity line of credit (HELOC) is a type of debt that leverages the equity in your home. "Equity" is the portion of your home's... read more »

Average Credit Card Debt by Age in 2024

By: Marcie Geffner, 6/27/2023

In 2022, US consumers of all ages dramatically increased how much debt they owe. Americans collectively added more than $1 trillion of new debt in just one year. Major credit bureau Experian described it as "an extraordinary increase not seen in over a decade." Total debt levels rose to almost $16.4 trillion, up 7% from $15.3 trillion a year earlier. Of that total, $910 billion was attributable to a reliance on credit cards. Multiple factors contributed to this explosion... read more »

Average Credit Card Debt by State in 2024

By: Erica Sandberg, 6/27/2023

Carrying over credit card debt from one month to the next is a common practice among American credit card holders. But life has become more expensive due to inflation, and many consumers are charging the things they want and need instead of paying cash. But unless a cardholder repays the balance in full when the bill comes in, compound interest will be added to the unpaid balance as it rolls over to the next month. This means you will pay more than you borrowed, and it will... read more »

Average Credit Card Debt by Year

By: Marcie Geffner, 6/27/2023

Consumers love credit. Whether it's in the form of credit cards, loans, lines of credit, or buy now, pay later contracts, credit enables people to buy things now and pay for them later. That gives them the flexibility to time their payments whenever they're most convenient. Given that convenience, it’s no surprise that overall consumer credit has climbed steadily for decades — with the occasional short-term ups and downs. The pattern is so clear it shows up in Federal Reserve... read more »

Average Credit Card Debt by Country in 2024

By: Zina Kumok, 11/15/2023

Almost every developed and emerging country uses credit cards these days. But when you look below the surface, credit card use varies significantly from country to country, and the countries with the highest credit card debt may surprise you. If you’re interested in learning about how different nations use credit cards, keep reading to see which have the biggest balances. Navigate This Article: Debt by Country ... read more »

Average Credit Card Debt By US Household in 2024

By: Zina Kumok, 6/27/2023

As a result of inflation, stagnating salaries, and mass layoffs, among other economic factors, consumer spending has turned into a huge credit card problem. In the US, total credit card debt has risen from $770 billion in the first quarter of 2022 to $986 billion in the fourth quarter of 2022.1 Read below to learn why household debt has ballooned and what the average consumer can do about it. Navigate This Article: Household... read more »

Average Credit Card Debt in America in 2024

By: Ashley Fricker, 6/27/2023

Credit card debt in America is seeing an unprecedented rise. And not just in the total amount owed, but also in the interest being charged to cardholder accounts. Between record inflation in 2022 and the cost of living outpacing earnings, Americans are turning to credit to make ends meet.1,2 But credit card debt is more expensive today than in previous years because the Fed has increased interest rates in an effort to curb inflation. The increased reliance on credit coupled... read more »

7 Ways to Manage Credit Card Debt When Rates Rise (Oct. 2024)

By: Marcie Geffner, 10/1/2024

After decades of low interest rates, the Federal Reserve hiked its key bank rate multiple times in 2022. The Fed's actions were intended to slow US economic activity and tamp down rising rates of inflation. Consumers who used their credit cards to cope with higher prices now face the additional financial pinch of higher rates for their card debt. According to the Fed's data, the average annual percentage rate (APR) for US card accounts that were charged interest rose to 18% in the... read more »

5 Credit Card Debt Forgiveness Options

By: Erica Sandberg, 11/3/2022

There is nothing quite like being forgiven. Maybe you hurt a friend, and they told you everything is fine now. Or you made a mistake at work, and your boss gave you a reprieve. Credit card companies can also give you a break sometimes. And if not, there are other debt forgiveness options to explore. Here is how you may be able to walk away from some or even all of your credit card bills. 1. Negotiate With Your Credit Card Issuer If you can't afford to pay the entire... read more »

Can You Have Good Credit With Credit Card Debt?

By: John Ulzheimer, 11/1/2022

There’s no question that being in credit card debt is a bad deal financially. Credit card debt, especially if it’s too close to your credit limits, can damage your credit score. Having made that point, it’s not entirely impossible to still have respectable credit even if you have balances on one or more of your credit card accounts. If you’re working to pay down your credit card debt, which you should, you may be wondering just how serious your situation is in terms of... read more »

Average Credit Card Debt by Age, State, and Income

By: Marcie Geffner, 9/8/2022

Do you want to be average? Maybe yes. Maybe no. When it comes to credit card debt, being average gives you an idea of how much other people owe. That amount could be comfortable for you, or it could be more or less than you feel you can manage with your income and financial situation. Regardless of whether average is right for you, it gives you a benchmark against which to measure yourself. Is your credit card debt similar to everyone else's? Or do you owe a lot more or less than... read more »

How to Pay Off Credit Card Debt (Oct. 2024)

By: Andrea Woroch, 10/1/2024

Credit cards offer many perks, from convenient payment options to robust reward programs to multiple layers of protection, including extended warranties and fraud alerts. But carrying even a small balance on your credit card will cost you big thanks to interest charges. Paying interest doesn’t just make everything you buy more expensive, but it essentially voids any rewards you earned on those purchases. More importantly, interest will quickly accumulate when you carry... read more »

9 Things to Know About Credit Card Debt Forgiveness (2024)

By: Marcie Geffner, 1/25/2024

Credit card debt forgiveness sounds like an attractive proposition. Your card debt is wiped out; you don't have to pay any of it, you get to keep your card with a zero balance, and there’s no impact on your credit scores. If only it were that simple. Alas, it's not. More likely, you'll have to pay at least some of your card debt, you may have to give up your card, and your credit scores will drop, perhaps even plummet. That doesn't mean you shouldn't do it. In fact, there... read more »

15 Shocking Credit Card Debt Statistics

By: Marcie Geffner, 8/4/2020

The fact that U.S. consumers owe almost $900 billion in credit card debt may not be shocking, but $900 billion is an enormous amount of debt, especially when you consider that not everyone in the country has a credit card account. The average credit card balance is more likely in the range of $6,000 to $8,000. Why do these credit card debt statistics matter? Broadly speaking, they show how important credit card debt is in the U.S. economy. Without credit cards, would that $900... read more »

9 Ways to Refinance Credit Card Debt (Oct. 2024)

By: Marcie Geffner, 10/1/2024

Card payments can take a big bite out of your monthly paycheck. If you're struggling to make those monthly payments, you may feel like you're fighting a never-ending battle. But what if there were a way — or several ways — to refinance, restructure or even eliminate your card debt and make your monthly payment smaller or even zero? Fortunately, there are such ways and you may be able to take advantage of them. Here are nine with some important pros and cons for each. 1. Perform a... read more »

11 Best Credit Cards to Pay Off Debt (Oct. 2024)

By: Adam West, 10/1/2024

If there were a true national pastime in America, acquiring debt might be it. From car loans to credit cards to student loans and even medical debt, Americans now owe more than at any point in history. In fact, according to the 2018 Planning and Progress Study by Northwestern Mutual, the average American has around $38,000 in personal debt, not including mortgage debt. If you’re feeling anxious lately about the amount of debt you are carrying, you’re not alone. Short of a huge... read more »

7 Credit Card Habits to Stay Out of Debt (2024)

By: Andrea Woroch, 1/25/2024

The average credit card debt per U.S. household hovers over $8,000. Although this number is shocking, it doesn’t mean you should cut up your cards and banish them from your life altogether. In fact, when used wisely, credit cards can actually improve your financial health. From increasing your credit score to offsetting everyday costs and travel expenses, and providing additional protection for big-ticket purchases, credit cards can be valuable tools toward managing your money... read more »

#1 Best Way to Consolidate Credit Card Debt (Oct. 2024)

By: Erica Sandberg, 10/1/2024

When you’re juggling multiple credit cards, managing them all like a pro while paying down the balances can be a major challenge. Wouldn’t it be nice to send just one payment every month and not have to worry about a variety of due dates? If you were to consolidate your accounts, you could. More so, consolidation may reduce the finance fees you’re currently paying and sometimes even increase your credit rating. But before you say, “sign me up,” get to know the different... read more »

Household Credit Card Debt is on the Rise

By: John Ulzheimer, 4/22/2019

Although credit card debt can represent one of the most expensive ways to borrow money, the numbers show that Americans are relying more and more on this plastic form of financing. The average American household carries an alarming $8,284 in credit card debt, according to a recent study released by WalletHub. Even more disturbing than this sizable number is the fact that this study also finds many Americans are hardly managing their credit card debt effectively. The study suggests... read more »

7 Steps to Effectively Manage Post-Holiday Credit Card Debt

By: Andrea Woroch, 11/29/2023

No matter how long ago the holiday season was, that debt can often linger for much of the following year. And just when you've escaped last year's debt, the next holiday season starts to loom. If your credit card bill is making you feel stressed, you’re not alone. A report from Magnify Money found that consumers who took on holiday debt in 2018 racked up an average of $1,230, and the average seems to rise every year. Although there’s not much you can do about your past spending... read more »

9 Best Credit Cards for Paying Down Debt (Oct. 2024)

By: Mike Randall, 10/1/2024

With so many credit cards out there these days, finding the best credit cards for paying down debt may seem like an impossible task. Well, you've come to the right place. Ten years ago in this country, a lot of things hit their peak; the stock market, government bond interest rates, and the amount of revolving debt carried by American consumers. The Great Recession led to a wave of contraction by the banks, the government, and by the rest of us. Since 2008, however, the stock market... read more »

9 Best Debt Consolidation Loans & Credit Cards (Oct. 2024)

By: Ashley Fricker, 10/1/2024

When it comes to finding the best debt consolidation loans and other options, a solid strategy is key. In the article below, we've compiled some of our top picks for personal loans and credit cards to consolidate debt. Many of the most successful chess players plan their moves out several rounds in advance, with contingencies already considered should their opponent not move as predicted. This ensures they're not making rash moves that could cost them a piece — or the game. The... read more »

2024 Credit Card Debt Statistics (Average U.S. Debt)

By: Brittney Mayer, 1/25/2024

Let's talk about credit card debt statistics. March of 2018 saw the sixth rise of the federal funds rate — and, thus, the U.S. Prime Rate — since 2015, a marker of the continued growth of the U.S. economy since its lows in the late 2000s. But while economists may hail the increase as a positive sign, average consumers may not feel so positive about an increase in their interest rates — particularly not the 50% of consumers with credit card debt that just got more expensive. And... read more »

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All articles tagged Debt (34)