This Is How Much Credit Card Debt The Average American Holds

Michael Murphy of Rosecliff Capital on credit card usage in the U.S. Credit cards make purchasing so simple that you might forget they need to be paid off every month. If you don’t pay in full, you’ll end up carrying a balance and start racking up interest charges, meaning anything you buy on credit could end up costing more than the price you originally paid. 16,000 in credit card debt.

Every time you make a purchase with your credit card, you incur a debt. At the end of the billing cycle, if you haven’t paid the full amount on time, that debt will start to accrue interest. According to data from the U.S. 1,292 per household each year. In May 2017, it was found that credit card debt had risen 6% from the previous year and reached an average high that hadn’t been seen since the Great Recession. Nevertheless, more than 60% of American households pay off their credit cards every month or don’t have one at all.

You could be getting handsomely rewarded every time you use your credit card. Let Bankrate help you maximize your points.S. The trouble with credit card debt in the U.S. Average credit card debt varies between demographics. For example, men hold on average thousands of dollars more in credit card debt than woman.

Across age groups, the amount of debt steadily rises as people get older until it reaches a peak for individuals between the ages of 35 and 54, but it starts to decline after that. And although many people continue to carry debt well into their 70s, people over age 75 have the lowest total average debt of any age group, comparably only to young people.

There is also a positive relationship between income level and credit card debt, with those in the highest income percentiles owing thousands of dollars more than those in the lowest. That’s consistent with racial demographics as well, as black and Hispanic-origin households not only earn less income than white and Asian households but also carry several thousands of dollars less in credit card debt. State with no income tax: Better or worse,

As people depend more and more on credit cards for everyday purchases, the overall average credit card debt is rising. Credit allows people finance their dreams, and more and more people are using credit cards to fund their lifestyle. This has resulted in a steady increase of average credit card debt in the U.S., with a rate of growth that often exceeds the average increase in household income across the nation.

Be sure that you don't allow unauthorized people to see your credit card numbers. 10. Don't use credit cards for groceries. Buying things like groceries with a credit card, unless you pay the card off each month, is a no win situation. Buying recurring items like groceries will only tend to increase your credit card debt each month.

In today's world of identify theft and shady business practices, checking your credit card statements for accuracy is becoming increasingly important. Many people will take a glance at the charges or the minimum amount due, but forget to check other important areas of the statement. This can be an expensive mistake to make.

Luckily, learning how to thoroughly check your credit card statements is easy. Get access to your credit card statement. Your credit card company will send a monthly statement, and some companies also provide online access. Go to the credit card company website and look for the registration link. You will be asked to provide information to prove your identity and enter in the credit card number and expiration date, but the registration process is quick and easy.

After you register, simply login to the credit card online banking section of the site and look for the “Statements” link. Check the purchases and credits. Save receipts from all the charges you made for the month so you can compare the receipts to the amounts showing on your statement. Being overcharged or even double-charged is a possibility, and it is your responsibility to ensure the amount you are being billed for is the exact amount you charged. Make sure the appropriate amount was credited to your account if you returned anything or had charges reversed.

Check the fees. If you carry a balance on your account, you will see a finance charge. Typically there is a different interest rate for purchases than for cash advances or balance transfers. Make sure the finance charge amount is correct. Also, if you were charged any extra fees, for late payments or something else, make sure that these items are correct and dispute any fees you feel are unfair. Check the APR. APR stands for annual percentage rate and is the interest rate for the account.

This number can change frequently, especially if you are late on payments. If you notice your APR increasing, call the company right away to negotiate a lower rate. Check the minimum amount due and the due date. If you do not have an automatic payment method set up, set one up to ensure you are not late on any payments.

If you do not like the time of month your due date falls on, call the company to see if it can change the due date for next month's billing cycle. Save the statement for future reference. Although online access makes checking your credit card statement easy and convenient, having a hard copy of your statement may come in handy and can also allow for quick reference should the need arise. If you are unsure of how to check your credit card statement online, call the company and ask the representative to walk you through the process over the phone.

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Myth: People with higher income have higher credit scores. Fact: Credit score is an indicative number related to the credit history of an individual. Myth: Checking your credit report severely impacts your credit score. Fact: There are two types of credit report checks or inquiries - hard check and soft check.