Because my last post got a few people riled up, I wanted to clarify how I felt about credit card debt.
I DON’T LIKE CREDIT CARD DEBT!
I looked up some stats for average debt in America that I thought were interesting:
The average debt per household is $5,700, but if you carry balances, that average balance goes up to $16,048.
If you can’t pay off balances, don’t use your card! If you are in debt and trying to get out of it, check if a balance transfer can save you some money on interest, and then throw as much as you can into these.
There is a total of $1,022,000,000 of revolving debt
(That’s over 1 trillion!) Ouch!
38.1% of all household carry some credit card debt.
Congratulations to the 61.9%!
If you owe more than $10,000 in credit card debt, your net worth is most likely negative or zero.
Obviously this isn’t always the case, but if your are paying over a thousand dollars in interest to the bank every year, you might have a hard time raising that net worth!
Alaska is the state with the most debt (coming in at just over $10,000).
Not sure why I found this so interesting.
The age range who owes the most is the baby boomers (45-54 years old).
Out of personal experience, I can see how this is true. My dad would rather purchase anything with credit and pay it off slowly, than use his cash at hand.
Millennials were one of the groups who owed the least!
I’m not saying its cause of this blog, but I will say most of my readers fall into this group.
The higher your income, the higher your debt!
But percentage wise it was the opposite…
Men tend to carry about $2,000 more in debt than women!
So get off your wife’s back over those new shoes David!
We hold 50% more debt than we did 10 years ago in America.
I would have thought the trend would be backward, but if you think about the wealth that baby boomers now hold, and how much of the population is a baby boomer, it makes sense.
What is the learning experience here?
Use credit responsibly!
Remember to pay off your balance in full every month to avoid any interest charges, and get yourself a card with nice cash back bonus rewards.
Before swiping your credit card, CHECK YOUR BANK ACCOUNT! Is there money in there to pay it off? If there isn’t, you shouldn’t be buying it!
If it helps you to pay your credit card weekly, or even daily, go for it!
What do you think about these stats? What successes (or failures) have you had with your credit cards?