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Americans in debt: Why the debts keep rising

| Oct 9, 2018 | Credit Card Debt

People in America are struggling with credit-card debt. The reality in today’s America is that people often want what they can’t afford right now. The society focuses on getting the best and newest products, even though that could cause individuals to go into debt.

The average person in America has around $6,375 in debt. That’s around 3 percent higher than in 2017, a problem that needs to be addressed before it gets out of hand.

The average credit score Americans have today is around 675, the highest it has been since the Great Recession. Scores can range from the low 300’s to 850, and it’s preferential if individuals have higher scores overall.

Why are people taking on more debt in America?

As the economy has recovered, more people are working and bringing in enough income to spend. They feel secure in their jobs, and that means they don’t worry if they put a few extra dollars on their credit cards. People become confident that they can handle their debts, even though the reality is that it can sometimes change in an instant if they get hurt or lose a job.

The average American household has around $16,883 in debt, a shockingly high number. To start paying this debt down, people need to look at exactly what they owe. Looking at balances and interest rates gives you a good idea about the best place to start saving money, and you can quickly pay off high-interest rate cards to reduce debt liabilities if you know which ones they are and where to begin.