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Average American Credit Card Debt – A Growing Problem

The average American credit card debt is growing exponentially. The hugeness of the problem is causing severe financial problems in the credit card market  , housing market, and equity markets as well. The average American credit card debt is having a huge effect on things such as home mortgages, bankruptcy filings, foreclosures, automobile loans, college loans, and more. As the average American credit card debt continues to skyrocket, an increasingly number of people are turning to debt consolidation services, as well as more drastic means, in an effort to repair their credit and get their financial life back on track.

The typical American is carrying a balance of around $1000 on their credit card. Of this $1000, if only the minimum 2% payments monthly were made, and nothing else was charged to it, it would take 22 years plus an additional $2300 in interest in order to pay off the debt.

So how much is the average American credit card debt in the USA? The average debt in years 2007 and 2008 was nearly $8500. This average debt has tripled in size since the early nineties. The typical American credit card holder shells out over $1200 a year in interest payments. With the current state of the economy and so many losing their jobs, that’s a huge amount of money.

The average interest rates on credit cards is 18.9% and rising. Some cards have introduction rates of as high as 23% and as much as 30% for those with damaged credit. 23% of Americans have maxed out their credit cards, 13% are at least 30 days behind on payments, and 11% have had their debt go into  collection.

With all this, it’s no mystery that the average American household or family wants to reduce their credit card debt. If they plan on purchasing a home in the next couple of years, they realize that mortgage lenders will look down on credit card indebtedness. In addition, reducing your average credit card debt will get you a better interest rate on your home mortgage. But many of those who already own a home, or are not planning to buy one, are uncomfortable with the high amount of their  credit card debt.

The best way to start the process of reducing your credit card debt is to cut back on other expenses and use the amount you save each month to pay towards your credit card balances. In addition, start keeping a spending diary. Most people have only a hazy idea of how they spend their money. Sure, they pay their debts online or write checks to pay their living expenses, but they do not categorize their day-to-day expenses, so they have no idea how much they could reduce their average credit card debt by cutting back on expenses.

So start keeping track of everything that you spend money on. Do this for one week. Track everything you buy with cash, checks, credit cards, and debit cards. Get a small notebook, carry it with you, and write down each item as you purchase it. Don’t wait until the end of the day to track your expenses; studies have shown that people underestimate their expenses when they try to remember what they purchased.

After you have itemized one week’s worth of expenses, go over each item and ask yourself whether you really needed that item and, if you did, whether you could have purchased a less expensive alternative. You can reduce your average credit card debt by cutting back on those items that you can easily live without.

Credit Card Debt Elimination Plans
In today’s economic maelstrom, the demand for credit card debt elimination plans is unprecedented. But if you have the self discipline to follow a plan, you can very often do just as well or better on your own.

Credit Card Consolidation Loans
Today, credit card consolidation loans are one of the more popular ways that people with severe credit card debt use to get their financial house in order.

Credit Card Debt Settlement:
If you’re struggling financially, the thought of making a credit card debt settlement may seem like a good idea. Before you do, however, there are some things that you should know.

Credit Card Debt Solutions
Credit card debt is one of the worse types of debts to have, but once you’re in debt, it can sometimes be difficult to choose from among the many so called credit card debt solutions out there.


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