Average Credit Card Debt Ten Grand?

I was stunned when I read the statistics on credit card debt in households with at least one credit card. Keep in mind this number is an “average” and we all know how these so called averages can get somewhat skewed. Apparently in those households with a credit card, the average debt is just over ten thousands bucks! That’s quite a lot, especially when you consider that the interest rate on credit cards is often in the high teens.

When you break this down even further, it’s even more disconcerting that often times credit cards are not paid off every month by their users, and this causes people to pay thousands upon thousands of dollars in interest over the life of the payments. What does that translate to? Thousands and thousands of dollars in money that is flushed right down the toilet.

If you have over ten thousand dollars in credit card debt, you may want to seriously consider getting some sort of balance transfer credit card consolidation with lower interest, or getting a loan to pay off the balances, so that at least you are at a lower, fixed interest rate. This can reduce the amount you ultimately pay in interest by the thousands. Everyone could use this money, and instead of paying it to other companies, you are paying yourself.

You can get your house fixed up, improve it, buy that new car you’ve been needing for a while, and things that actually qualify as somewhat of an investment, instead of just straight losing your money to thousands in interest.

One of the tips to not get your credit card balances so high is to not use it on easily or quickly consumed items, like a night out. Think of how quickly you ate that dinner, and then think of how many years it could potentially take you to pay off that meal, and it’ll give you a different perspective on how much you’re really spending on these things that only last but a moment.

Also, try not to EVER just pay minimums on your cards. If you can at all, try to pay about double the minimum, or even better, pay off the balances every month. That way you can maximize your gas rewards or travel rewards right away and also not be paying outrageous interest. By the way, I have a feeling that with all the new legislation governing credit cards, we may see these rewards programs fade into the sunset, so take maximum advantage while you can!