American households with credit card debt have an average of $16,061 of it, according a study from NerdWallet. NerdWallet adds that consumers who carry credit card debt pay an average of $1,292 per year in interest on it.
Now, maybe you read that top line statistic and say, “great! I’m below the average.” But there are two big points to consider when it comes to credit card debt:
1. It’s all relative. Just about any amount of credit card debt becomes unsustainable when a financial crisis occurs. Keep that in mind before you accumulate it.
2. All credit card debt is very expensive. Credit cards are a bad bet. Meaning, the companies that issue them are betting against you at every step. They are betting that you won’t pay balances off before “0 interest” promo deals expire. Especially companies where purchase rates are in the high double-digits.
In other words, it’s all bad debt. You need to pay off your credit cards each month.
If you can’t, come see ProMedica FCU. We have some ideas to help you to consolidate some of the high-interest debt into a lower-interest solution. We can also discuss how to free up cash flow to pay down your cards quicker.
Again, the best solution is to pay of those cards each month. If you can’t come see ProMedica FCU before you find yourself shelling out hundreds or thousands of dollars on interest.