How to Deal with Your Credit Card Debt: Average American Debt Overview and Solutions
Credit Card Debt: A Common Burden
Owing money on credit cards is costly. The average interest rate in February 2024 was 21.59%. Data shows many consumers owe money and have charged a good amount on their cards.
The Average American Balance
According to Experian, the average credit card balance in Q3 2023 was $6,501, a 10% increase from the previous year. Americans collectively owe close to $1.07 trillion.
The Impact of High Utilization Ratio
Americans have an average credit utilization ratio of 29%, which can affect credit scores. A ratio above 30% may hurt your credit score long-term.
Managing Debt and Avoiding High Costs
Take control of your debt by exploring refinancing options, developing a payment plan, and making strategic decisions on future credit card use.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.