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According to a 2016 article on Nerd Wallet, the average American carries more than $16,000 in debt, and has an average household debt of over $130,000. Many factors contribute to this, including a cost of living that hasn’t kept up with income growth.
Many Americans suffer from the aftermath of the global economy crisis. These facts, plus the ones in the article to follow aren’t meant to scare you. Rather, its meant to provide you solid options to manage your finances in a better, more empowering way. Below are five ways that will help you escape the chains of Credit Card Debt now.
1. Beware of Month-to-Month Credit Card Debt
It isn’t a small number of American household that carry credit-card debt. In fact, more than 80% of Americans have a minimum of one credit card, with many having more. So its very important to know your not alone. At the moment, it is calculated that there are 1.2 billion credit cards in active use in the United States. Of those, nearly 60% carry their credit-card debt over from month to month.
For those that do pay a credit-card bill each month, only about 16% of their outstanding bill gets paid. It’s better to figure out a way to pay the bill in full if possible. This could save you serious cash in the long run. If your beyond the point of being able to pay the balances in full and need help.
You could try a Free Debt Consultation from CuraDebt to see what are your options.
2. Too Many Credit Cards
Quite a few Americans actually have more than one credit card. They have at least three to be exact. This includes a gas card. Many of these card-holders are college students digging the credit hole early. Of those in this group, 78% have at least one card.
The solution then seems to learn to live without credit cards, but that is sometimes counter productive. Rather, an article on the Business Insider suggests that people learn how to budget and to streamline their finances.
3. Consumer Debt Continues to Grow
The Consumer Federation of America has said that Americans actually owe more in credit-card debt than they do in student-loan debt, which is already substantial. Currently, the credit-card debt for each household is over $132,000 per household cost over $1,300 in interest charges per year.
Additionally, the amount of debt that they have is expected to surpass the debt amounts of debt owed during the Great Recession. In light of this, it’s best to pay off credit-card balances each month if possible.
4. High Credit Card Interest Rates
On average, the American household pays almost 14% in interest on their credit cards. Nerd Wallet suggests that the average American household pays a total of $1,300 a year in credit-card interest. Getting rid of this debt and applying it toward something else goes a long way toward reducing the burden of debt.
5. Paying Off Credit-Card Debt Takes Years
If not brought under control, consumers can wind up paying off a credit card for more than 20 years of their lives. And that’s on a credit card that has just a $1,000 put on it initially. As mentioned, that extra debt can add up to almost $1,300 a year in extra payments.
What Choices Do you Have?
While it can feel overwhelming to read through these five facts, credit-card debt doesn’t have to be overwhelming. Consumers holding credit-card debt can get the relief they need, even if it feels like the problem is urgent.
Additionally, while it’s ideal to pay off credit-card debt, sometimes it’s just not possible. Extended illness or unemployment can wipe out savings, making it nearly impossible to get ahead of debt – even for consumers who have the best of intentions.
Fortunately, CuraDebt helps consumers settle millions of dollars in debt for just a fraction of the actual amount owed. Click here now to chat with one of our professional debt specialists. He/ she can help the average American borrower get a handle on your debt, no matter how big it is. This in turn will help consumers step back onto the road to financial freedom.
Are you interested in financial freedom? What other questions do you have for me on how rid yourself of debt?
If you are interested in learning how how to get out of debt, I created a FREE 10 Days to Financial Freedom eCourse tutorial that will help you get out of debt.