Average American CC Debt $6,929 Revolving Balance

[dado potato]

According to Equifax, 48% of American households carry a credit card balance. In other words, they do not pay it down to zero on the due date every month. The average APR on credit card debt is 16.46%

The average revolving credit card balance is $6,929... so the average cost of interest charges per year would be about $1,140 for those American households that carry a revolving balance.

Data from December 2018.

http://www.nerdwallet.com/blog/average-credit-card-debt-household

[Gardnr]

It's good to be ZERO!

[lmerullo]

I'm also a zero.

[CathyA]

Me too! :)

[catherine]

This thread is reminding me of the old Dr. Pepper jingle:

I pay down my balance and I'm proud
I used to feel alone in the crowd
But now I think these others are jerks
Cuz being debt-free comes with perks!

I'm a zero!
You're a zero!
He's a zero!
She's a zero!
Wouldn't you like to be a zero, too!

Be a hero....take your debt to zero!

[Float On]

This thread is reminding me of the old Dr. Pepper jingle:

I pay down my balance and I'm proud
I used to feel alone in the crowd
But now I think these others are jerks
Cuz being debt-free comes with perks!

I'm a zero!
You're a zero!
He's a zero!
She's a zero!
Wouldn't you like to be a zero, too!

Be a hero....take your debt to zero!


When I helped run day camps at an inner city ministry center in Washington DC, the little girls with the jump ropes would chant:

Visa, Mastercard
Aaaamerican Express
Ain't got nothin'
'gainst them credit cards
but the CASHHHH
is the best!

I'm hoping to pay off some "stupid tax" with my 2nd job this year.

[organictex]

as someone hoping to be a zero someday (btw, reminds me of a Smashing Pumpkins song i love!) i have decided that
all (3) cc's i have are about the same interest rate so possibly attacking the lowest balance would be best as it could give
you a semi-quick victory? what is the thought on this approach, versus attacking the largest balance?
thanks! jim

[dado potato]

I am for attacking the lowest carried balance first, because you expect victorious feelings will come to you sooner. I am assuming there is no other creditor with an even higher interest rate, such as pay-day loans, etc.

Was it a plan to have 3 CC? When the balance on one gets down to zero, you might want to think about how many cards you need. Some folks settle on 2, so that each spouse has their own CC (and so they both maintain a credit history and would have a credit score, should a "big change" cause either individual to need to apply for credit some day). And some folks opt for an additional credit card for a special purpose, such as paying at the pump for fuel for a specific vehicle.


Once a CC account is zero balance, do you have a strategy for keeping the balance at zero?

[ToomuchStuff]

Paying off the lowest balance first, will give you a goal accomplished feeling, ONLY if you don't go back into the habit of using it and keeping a balance on it.

[organictex]

I am for attacking the lowest carried balance first, because you expect victorious feelings will come to you sooner. I am assuming there is no other creditor with an even higher interest rate, such as pay-day loans, etc.

Was it a plan to have 3 CC? When the balance on one gets down to zero, you might want to think about how many cards you need. Some folks settle on 2, so that each spouse has their own CC (and so they both maintain a credit history and would have a credit score, should a "big change" cause either individual to need to apply for credit some day). And some folks opt for an additional credit card for a special purpose, such as paying at the pump for fuel for a specific vehicle.


Once a CC account is zero balance, do you have a strategy for keeping the balance at zero?
thanks for the reply. i think i will stick to the lowest balance and then close that acct. as you say i don't
really need 3. our biggest issue is car repairs...don't seem to get one paid off when something else goes
down :(
jim

[organictex]

Paying off the lowest balance first, will give you a goal accomplished feeling, ONLY if you don't go back into the habit of using it and keeping a balance on it.
thanks for the reply. i agree and will close that acct when i pay it off...and pray the cars stay good for awhile ;)
jim

[Rogar]

I've only had debit cards my whole life. The concept of have a revolving balance on a a credit card is foreign. However, I've considered the flip side where you get a percent or two bonus of some sort for all the charges with the card. I know of people who cash in pretty big with this.

[ToomuchStuff]

thanks for the reply. i agree and will close that acct when i pay it off...and pray the cars stay good for awhile ;)
jim

If you haven't yet, you might look up/listen to Dave Ramsey (start with $1000.00 emergency fund) and the baby steps. I am not a listener, just someone who he and I had a mutual friend, and have heard a bunch of people recommend him.

[organictex]

If you haven't yet, you might look up/listen to Dave Ramsey (start with $1000.00 emergency fund) and the baby steps. I am not a listener, just someone who he and I had a mutual friend, and have heard a bunch of people recommend him.
thanks, i will definitely check him out.

[Teacher Terry]

The emergency fund is key to getting out of the CC cycle.

[organictex]

The emergency fund is key to getting out of the CC cycle.
yep, that's also (to me) the hardest to accumulate...BUT, i'm doing better than many
and try to keep that in mind ;)

[SteveinMN]

I've only had debit cards my whole life. The concept of have a revolving balance on a a credit card is foreign.
Unless it's changed recently, debit cards do not offer the cardholder protection against fradulent charges and "credit holds" that credit cards offer. We have credit cards and, with rare exception, the balances are paid off monthly. Protection (and, sometimes, benefits like cashback) without the cost.

[Gardnr]

thanks for the reply. i think i will stick to the lowest balance and then close that acct. as you say i don't
really need 3. our biggest issue is car repairs...don't seem to get one paid off when something else goes down :( jim

I agree with paying off the smallest first. I do suggest that you not close the account right away. Freeze it in a glass of water and keep it on your credit report for now. Available credit is part of your score.

Take that payment money and "snowball it" onto the next CC you want to pay off. Then do the above again. Etc, until you're debt free!!!

We only have 1 CC. We pay it off monthly. We use it for everything we can and do a lot of free travel on the rewards.

It's a wonderful goal to pay off your CCs. You will feel fabulous along the way at your monthly successes as well as when you hit zero! congrats on your goal!!!

[Simplemind]

We put everything possible on our CC and pay it off every month. FF miles ya know...… We have no debt.

[organictex]

I agree with paying off the smallest first. I do suggest that you not close the account right away. Freeze it in a glass of water and keep it on your credit report for now. Available credit is part of your score.

Take that payment money and "snowball it" onto the next CC you want to pay off. Then do the above again. Etc, until you're debt free!!!

We only have 1 CC. We pay it off monthly. We use it for everything we can and do a lot of free travel on the rewards.

It's a wonderful goal to pay off your CCs. You will feel fabulous along the way at your monthly successes as well as when you hit zero! congrats on your goal!!!
thanks, that is good advice!
jim

[Tenngal]

I keep mine paid down most of the time.

It has not been over $500 in years.

Most disturbing to me is the number of people who do things like put vacations on credit cards.

[Teacher Terry]

Where we live the average family of 4 has a household income of 48k. It’s not cheap to live here so no wonder people have CC debt.

[catherine]

thanks, i will definitely check him out.

I LOVE Dave Ramsey. Some will argue with his financial advice; some will argue with his Christian Evangelical bent, but no one can argue that if people follow his advice to the letter, they will get out of debt and succeed in "living like no one else."

[Gardnr]

Most disturbing to me is the number of people who do things like put vacations on credit cards.

We always do. Why wouldn't we? We collect all those rewards dollars for money we would spend anyway.

[Teacher Terry]

I am sure Tammy means people that have no money to pay the bill.

[catherine]

I am sure Tammy means people that have no money to pay the bill.

Yes... using the CC as an emergency fund is bad enough, but paying two years later for a meal you had on a cruise ages ago is not prudent.

One time I opened a Banana Republic card at the cash register (you know how they always sell the CC at the register?) when buying something on sale. By the time I added the CC interest to the "sale" cost of the item, it was probably more than the original cost.

I know a lot of people are responsible and pay off their CCs every month, and never carry a balance, but for every one of those there are the others that make the CC shareholders very happy.

[Gardnr]

I am sure Tammy means people that have no money to pay the bill.

ah thanks for the clarity. I think from my frame of reference of spending below our means.

[Teacher Terry]

We use our CC for big purchases and trips. We don’t charge all our expenses on a daily basis because we would overspend and be in trouble. I know some people have no issues with this.