Thirty-eight percent of US households carry credit card debt, from month to month, according to 2015 statistics from the Federal Reserve. For those households in debt, the average is $9600. Most indebted Americans don’t even know how much debt they owe. There are many ways to achieve credit card debt relief.
Credit Card Debt Relief
Managing credit card debt can be difficult and complicated. Before coming up with a debt relief strategy that works for you, you should learn exactly how your credit card’s interest rate and fee structure works.
While debit and credit cards look identical today, they are not. There are differences in terms of purchase protections, overdrafts, fees and rewards program. Take a look at the pros and cons of each and see which is better for you.
How Many Americans Are in Debt?
According to a 2015 report by the Pew Charitable Trusts, eight in 10 Americans have debt in some fashion, most often because of a mortgage. Increasingly, people are carrying debt into retirement, a new trend from previous generations, when people accumulated debt at young ages, but set goals to have it erased when they were older.
Other key findings:
- More Americans view debt as a necessity. Some 69% of the survey respondents said they preferred not to have non-mortgage debt, but 68% said loans and credit cards had enabled them to find opportunities, such as purchases or investments.
- Generation X and Millennial respondent were more likely to express negative views about debt than older respondents.
- Median debt for white households ($41,500) was more than double the median debt for black and Hispanic households. The median net worth of white families ($159,400) was 13 times higher than of black families and 10 times that of Hispanic families.
- Members of Generation X had twice the amount of mortgage debt in their 30s compared to baby boomers at the same age. One reason: Gen X’ers were in their prime home buying years during the run-up in housing prices before the Great Recession (2008), leading to higher mortgages.