What is the average household credit card debt
When it comes to average credit card debt, there is a lot of statistical information. The real numbers we can find in different authoritative sources.
Household debt is the amount of money that adults in household owe different financial institutions. It includes mortgage loans and consumer debt. Household debt may be defined in several ways and it based on what types of debt are included. Therefore, common debt types include home equity loans, student loans, home mortgages, auto loans, credit cards.
The Federal Reserve represents a Survey of Consumer Finances every 3 years. The last survey was done in 2013. According to that report, between 2010-2013, the part of families with credit card debt slightly decreased. Mean and median balances for family persons with credit card debt fell 18% and 25%, respectively, and the part of families that every month pay off credit cards increased.
In 2010, 39% of families held credit card debt, and in 2013, 38% of families held credit card debt. Not surprisingly, more than 47% of couples with children stated they had credit card balances and encompassed the largest group with credit card debt. While single elder people without children were not so likely to carry balances at 27%. The median family with a credit card balance carried $2300 in 2013, down 18% from $2800 in 2010. The mean balance fell from $7600 in 2010 to $5700 in 2013, a 25% drop.
As for educational backgrounds, the major median credit card balance reported was $4200 for those with a college degree. And those with no high school degree stated a median balance of $1600.
Surprisingly, persons younger than 35 stated the smallest balances at a median $1600. The major median balances held belonged to people in age 35-54 ($3500), followed by 55-64 ($2800), 65-74 ($2200), age 75 and more ($1800).
How does your debt compare?
When you're in debt, then you're wondering whether you're better/worse than other borrowers are. One of the easiest ways to find out is to use online-calculators or services. Along with a credit score person will see how much he or she owes - and see how it associates to other people. Moreover, consumer will get information on how to eliminate his debt and pay these balances down. Getting out of credit card debt is good for your credit score and can save money in interest charges.
The average creditcard debt per USA household was almost $7,700 in January 2016 ($935 billion divided by nearly 122 million USA households). That is 5,4% higher than in December 2015.
The average debt per individual adult is more than $2,900. Almost 72% of adults in U.S. have credit cards. Thus, the average creditcard debt per cardholder is approximately $4,000. Many people pay off their cards regularly, and their average debt is closer to $1,130. It is much lower than the average debt load for cardholder who can't pay it off ($7,500).
Credit card debt means a part of customer debt that he/she has to pay off every month (it is known as a revolving debt).
Seven steps that help get out of debt
1. Make a Budget. Cardholders can get into debt because of spending more money than they earn. Making a budget helps avoid this problem. Budget allows person to see how much money he/she makes and where that monies are going (eating out at luxury restaurants, buying coffee every day). Don't buy expensive and unnecessary things until you repay the loan.
2. Stop using your bankcard if you have debts, leave the card at home. Use cash instead. Only buy items you can pay for with real money.
3. Pay off your entire bill every month. If it is impossible to do, then pay a little more than minimum payment until your debt is gone.
4. If you have many credit cards, you should concentrate on paying off the card with the lowest debt (the Snowball Method), or begin with credit card that has the maximum interest rate (the Stacking Method). Don't forget to make minimum payment on other cards.
5. Renegotiation of Mortgage Rates helps to save more money every month. If the interest rate drops to 5% from 7% on a $100,000 mortgage, you can save $128 per month. This money you can apply towards paying off credit cards.
6. Refinance Mortgage Rates. Thus, you'll restructure the mortgage into a most appropriate interest rate.
7. Start saving money after paying off the creditcard debt.