Credit debts have hit an all-time high in America, so it’s important that you have your own plan for getting out of debt. The average American has debts of around $6,375 on credit cards, which is around 3 percent higher than in 2016. Interestingly, despite the rise in overall debt, Americans have higher credit scores to go along with those debts today.
Experian’s annual study reports that the total credit debt in America has risen to over $1 trillion. The average person’s credit score is now 675, which is being reported as the highest average score since the Great Recession. Scores generally range from 301 to 850.
Why is spending going up?
Fortunately, people are finding that their economic positions are improving. With more money to spend, they’re more comfortable with spending and managing new debts. This means some take out credit cards or spend beyond their means with the intention of paying back the debts over time.
Although it’s tempting to buy more than you can afford, it’s always important to have a plan for your credit card debts. Try to make purchases that you can pay off at the end of the month, and if you do put more on the card, make a plan for paying it off early, so you can save yourself the interest. Figure out what you owe and begin to pay down debts when they climb; no one should feel that they have to make a choice between necessities and paying their credit card bills.
If you do find that you’re in over your head, remember that there are options for getting out of debt. Negotiating or considering bankruptcy may help you.
Source: CNBC, “Credit card debt hits a record high. It’s time to make a payoff plan,” Jessica Dickler, Jan. 23, 2018