Average Credit Card Debt In US Now Soaring Past $6,500

Epoch Times ^ | 05/11/2024 | Mary Prenon

[Peter ODonnell]

It takes a while to recover from a nearly maxed out card, either you put all you have available into it (and spend as little as possible) or you put in smaller fixed amounts and don’t use it at all. Can take six months to a year but usually feasible.

[Tilted Irish Kilt]

Prepper Ping – Credit card debt keeps rising, with the highest average debt per card escalating to $8,155 in New Jersey, and a national average credit card debt of $6,555
Other states in the run-up includes Connecticut, Maryland, and New York on a per card basis
It's the economy that the administration has been pushing, and continues to push. They don't know any better
Stay out of debt as best you can !!

”A just-released report from Scholaroo indicates that the U.S. national average for credit card debt has escalated to $6,555,
with New Jersey residents leading the nation with an average debt of $8,155 per credit card.
Scholaroo, a national firm matching college students with potential scholarships, surveyed more than 2,000 people across the United States during the final quarter of 2023.

"Coming in at a close second is Connecticut, with an average debt of $8,011 per credit card, followed by Maryland, New York,
and Alaska—all with average credit card debts of more than $7,600 per card.
Rounding out the top 10 states are Colorado, California, Massachusetts, Florida, and Hawaii,
all with average credit card debts in excess of $7,400.

“New Jersey residents’ debt surpasses the national average by 24 percent, while Mississippi has the lowest average credit card debt,
with debtors owing just $5,186—20 percent less than the national average,” the report states."

"Kentucky and Indiana also fell on the lower side, with an average of $5,295."

[Jamestown1630]

'In the credit card industry the call us “DEAD BEATS” because we pay our cards on time with no penalties.'

I've heard this too.

[roadcat]

One of my sisters used poor logic while using credit. She would max out her card and then run to my mom to help her and pay it off. I argued with my mom to no avail, to cut off my sister from being bailed out. Well, mom went broke and passed, leaving nothing.

Sister would brag to me that she owned an expensive new car that cost $37K, because I had an expensive car (which I paid cash for it). Asked her what brand, and told her I know her car goes for $25K. She then says, with the interest on the car loan it will be $37K. She had that car for 2 years before it was broken and abused, non-op, but she still had the car loan to pay off.

One day she calls me and asks me to buy her house. Says she and husband can't afford the mortgage loan. I said I know the loan when she bought was only $120K with small monthly payments, and she can't make that? Then she told me they repeatedly took out equity loans, and her monthly loan amounts were close to $5K/month. I told her to immediately sell the house for $690K (going rate for area), and pay off the loan. She said she didn't want someone to steal the house for that price, and wanted $800K. House sat on the market for almost a year while they struggled to pay the monthly mortgage. Finally had to take an offer, at $690K.

And they went into bankruptcy and lost everything, ended up renting a cheap place in Las Vegas, nothing left to help their now-adult kids. Stupid people don't wisely use money and credit.

[AlaskaErik]

I pay all my cards off in full every month. That’s the only way to avoid falling into that sinkhole.

[The Duke]

"Do they include people who buy everything on the card to get cash back or convenience and pay it off every month before interest comes due?"

Most cards these days actually collect interest on a daily basis. They just divide the APR by the number of days in the year and charge based on that.

[Dr. Sivana]

Most cards these days actually collect interest on a daily basis. They just divide the APR by the number of days in the year and charge based on that.

Every card I have ever had includes a 25-35 day grace period from the end of the billing period before any interest accrues. MANY people pay the bill and no interest.

[BDParrish]

Thanks for posting this, S&F.
Here is the latest Consumer Credit Market Report, dated 2023 with 2022 data.
https://files.consumerfinance.gov/f/documents/cfpb_consumer-credit-card-market-report_2023.pdf
Though others on the thread have suggested, based on their own experience, that price inflation for transactional usage may account for the numbers, that is not what is being reported by Epoch Times. Perhaps your commenters did not read the article.
Freegards!
BrianD

[The Duke]

https://www.forbes.com/advisor/credit-cards/how-and-when-is-credit-card-interest-charged/

Search for "How Does Interest Work?"

Your own card may calculate/charge interest differently, but I've read this from multiple sources.

[Dr. Sivana]

Your link agrees with my point:

If a credit card balance is not paid in full by a payment due date, credit card companies begin charging interest

Millions pay the card in full every month before the due date, That due date is typically 20-25 days after you get billed. If you spend early in the cycle, you can get about 50 days of float.

[Labyrinthos]

You just described me. I pay everything by CC, and pay every CC off each month. 841 credit rating.

[minnesota_bound]

I was able to pay off my cards this year. The only one that will have anything will be the one I use to buy thru Amazon.

I have a dental bill coming up and it may be expensive. I will see how much my medical insurance covers. Otherwise the rest on a card then will be paid off.

It only took me 50 years to actually have a zero balance.... for a while.

[Kenny Bania]

Yep. Between my personal spending and work travel (extensive, 200+ days a year), credit card companies pay me almost six-figures a year.