Understanding Your Average Credit Card Debt

Credit card debt is no stranger to the majority of the consumers that base their ability to live on taking care of themselves financially. In fact, according to various types of research done on financial debt among American consumers, credit cards are among the top reasons why American consumers are in huge debts. You may be aware that you are one of the individuals suffering from credit card debt, but do you know the extremity of your credit card debt? To learn about a way to find out just how bad your average credit card debt is, keep reading.

What the Numbers Say

Coming to an exact answer on how bad your average credit card debt is not as easy as you may think. There are a variety of sources that allow you the ability to see your average credit card debt by looking at the average balance for all of your credit cards. Below are some recent calculations taken from surveys conducted by the following websites:

Magnify Money (surveyed 1,435 Americans)

• Americans’ average credit card debt = $10,902
• 42.2% of Americans in credit card debt
• Americans ages 30-45 credit card debt = $8,864
• Americans ages 46 and up credit card debt = $12,026

Nerd Wallet (based on statistics from governmental data)

• Americans’ household average credit card debt = $15,191
• Average credit card debt per household = $7,087

Credit Cards

• Americans’ average credit card balance = $5,047
• Debt per adult Americans = $3,364
• Average credit card debt per household = $7,100

As you can see, credit card debt is something that plagues many Americans, and many are currently fighting to get their average credit card debt back to a manageable number.

The Definition of Credit Card Debt

Some people are not aware of the extent of their average credit card debt because they are not fully aware of what is included with the debt. Some people have regular credit cards issued by credit card companies while some have credit cards issued from retail stores, like Target, Sears, and Wal-Mart. Then there are those lucky few that have qualified for both types of credit cards, but are also unlucky for each card adding to their average credit card debt. Here are the differences in each card.

Store credit cards, like the ones you were issued at the checkout counters in retail or grocery stores, are generally given lower limits on the cards. The credit cards given to you from major credit card companies usually have higher card limits. Both, however, are calculated in your credit card debt. Therefore, regardless of the kind of card you have, it is included in your average credit card debt calculation. So a brief definition of credit card debt would be all of the unpaid balances remaining on all types of credit cards that you own.

Get Rid of Your Debt

Regardless to whether you have a store credit card with low credit limits or a major credit card with high credit limits, you may be tired of creditors calling you to find out when and how you will plan to pay back what you owe on your credit cards. It has now become your destiny to pay off your credit card debt, or at least get it to a point to where your average credit card debt will no longer be a hindrance to you financially. The best way is to get the number of debt down to zero. Here are some ways that you can work to make that happen.

• Start from the bottom—take your credit card with the lowest debt and start to pay that off first while also trying to pay a small balance on your other cards. When the first card is paid in full, continuing paying on the card with the next lowest balance. Continue the pattern until all credit card debt is paid.
• Start with the highest interest—determine which cards have the highest interest rates. Whichever card has the highest, start paying those back first. Once that card has been paid back in full, start paying of the card with the next highest interest rate.
• Transfer the balance—if you have credit cards that are still eligible for the 0% interest rate, pay those off before the interest rates kick in. When transferring the balance, you must pay a 2% to 4% interest fee.
• Don’t Use the Cards—this may be the most obvious answer to solve credit card debt. While you are working to eliminate the debt, and once you have eliminated the debt, stop yourself from getting back into debt by putting the card down.

Getting rid of credit card debt is much more difficult than it is to build it up. You must be ready for hard work and determination if you wish to get rid of credit card debt. Try negotiating terms with your creditors or seek financial help if you are still unsure of how to eliminate your credit card debt.