Americans have more credit card debt than ever. In a survey by NerdWallet, it was revealed that Americans have 905 billion dollars of credit card debt in 2017. This is 8% higher than last year. On average, the American household has $15,654 in credit card debt.
Of course, credit card debt is lower than other kinds of debt. For example, mortgage debt in America is estimated at 8.74 trillion dollars. Auto loans and student debt are also high.
One of the reasons why credit card debt is increasing is because of rising healthcare costs. 27 million Americans use their credit cards to cover their healthcare costs. Other costs have gone up as well, including food and housing costs. Besides, many Americans are spending money on things that they do not need. This causes their debt to go up, which causes their interest rates to go up. They end up paying more.
First of all, make sure to budget. You should not buy things that you do not need and which you cannot afford. If you are spending money on a lifestyle that is above your means, you need to start taking an honest look at yourself and your spending habits.
You should also attempt to pay off your entire balance every month. Even if you cannot do that, and you can only pay the minimum required payment, then you should at least try to keep your interest levels low.