Credit Card Debt in the US

credit card

These statistics show a gloomy picture

Credit card debt seems to be out of control in the US where the average household is owing over $130,000 in debt and of this amount over $15,000 is for credit card debts alone. It is not only government that is staggering under a very large national debt of $19 trillion but that situation is also the experience of every US household only on a smaller scale. Now most economists will suggest that consumers find the way to pay off those balances and to free themselves from the overwhelming burden of debt. It is not merely the debt that becomes a problem but also the daily stress and pressure of having to live with large amounts of debt. Unfortunately settling those debts is not always that easy. Comprehensive research into all aspects of debt and why people engage in financial transactions which will result in debt has discovered that the increasing debts of most people is not merely the consequences of reckless spending. There is a lot more behind this phenomena but consumers should not lose hope because there is still a lot of things that people can do to once again become debt free.

This will require a plan

In order to be able to deal effectively with large debts, the first step will always be to keep an eye on current income, in other words, how much do we have to work with. That scenario will naturally differ from household to household. There is also different types of debt such as student loans, mortgages and auto loan debts all of which when managed properly could actually help to strengthen your financial position and your credit score. This is not the case when it comes to credit card debt and other types of debt which mostly carries high-interest rates because these can be extremely costly and every effort should be made to repay them as quickly as possible. Comprehensive research has been done where a lot of data has been analyzed with the object of determining why US citizens have so much debt. A further objective was to provide a measure of clarity which could help consumers with financial decisions and also in their efforts to budget better and how to manage all of those debts in such a way that unnecessary interest charges could be avoided. Many US citizens simply have no other choice but to obtain professional advice such as those which is provided here https://www.nationaldebtrelief.com/.

Why is debt getting out of control?

The simple fact of the matter is that people’s income has not nearly grown as much over the past decade as was the case with the cost of living and related expenses. According to carefully researched statistics, since 2003 household incomes has grown by approximately 26% while the cost of household expenses and the cost of everyday living was much, much more with increases in food and beverage prices of 37% while during the same time Medical costs have increased by 51% which is probably how the $16 billion profits of Johnson & Johnson could be accounted for. The current figures for domestic debt could be much higher because consumers tend to underreport exactly how much debt they have. There are actually statistics that show that in 2013 the actual lender reported credit card debt was 150% higher than the figures which were reported by consumers. This simply does not paint a favorable picture of the situation in the US as things are currently.

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  1. […] can only afford to pay back the minimum monthly requirement, then you are living beyond your means. Credit card debt does not reduce overall if you only pay the minimum requirement. Also, paying the minimum means you […]

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