Credit Card Debt
A no-hassle guide to understanding and elimating your debt.
Here’s the top credit card debt stories making headlines today.
Credit card interest rates continue to climb, hitting a record at the end of January of 15.42 percent. Even low interest rate credit cards now carry an average APR of 12.22 percent. And bad credit cards have an average interest rate at almost 23 percent.
The United States led the world in identity theft data breaches in 2016 with almost 2,000 breaches in a single year. Over 68 percent of data breaches occur in the U.S. – that’s ten times the number that occur in Russia, who placed second.
Mobile payment platforms continue to gain ground over traditional payment methods. For instance, Apple Pay reports it had 50 percent more transactions in 2016 than 2015.
For more information, visit the Credit Card Debt section of ConsolidatedCredit.org.
Top Credit Card Debt Statistics
the average total credit card balance for American households
the average credit card interest rate today
the total interest credit card charges you can expect to pay in a year
What you need to know about your debt
Eliminate debt effectively
If you’re working to eliminate high interest rate credit card debt, we can help you identify the right solution for your financial needs so you can avoid the guesswork and stop the sleepless nights.
- Debt Help Guide
- Reduce Debt within Your Budget
- 5 Options for Debt Relief
- Debt Relief Do’s and Don’ts
- 3 Reasons Why You Can’t Eliminate Your Debt
- Where to Go for Debt Advice
- Debt Repayment Calculator
Do you need help?
Most people prefer to solve debt problems on their own, but at a certain point you may require help to get out of debt. If you’re not sure if you’ve crossed that line yet, these resources can help.
Credit card consolidation
This is the process of combining multiple credit card debts into a single payment. The goal is to lower the interest rate applied to your debt so it’s easier to repay.
- A Guide to Credit Card Consolidation
- 5 Reasons Credit Consolidation Can Fail
- How to Use a Credit Card Debt Consolidation Loan
- Using a Balance Transfer for Credit Consolidation
Understand your cards
Often credit card debt problems stem from a lack of understanding about how your credit cards work. Don’t let debt become a problem just because you failed to read the fine print!
- Credit Cards 101: The Basics
- Credit Cards 201: Use Credit Strategically
- APR: The Silent Killer on Credit Card Debt
- Decoding Your Credit Card Statement
- The Secrets of Secured Credit Cards
- The Right time to Give a Teen Credit
Credit cards vs. other debts
Learn how credit card debt fits in with other consumer debts. The more you understand your debt, the better you can prioritize repayment and make effective plans for debt elimination.
5 Reasons Credit Card Debt is Tough to Eliminate
- Since credit cards create revolving debt, it means that the more you charge, the more you owe. As your balances increase, so does the amount of money you need to pay the bill.
- Minimum payments are not designed to pay off debt efficiently. You can pay month after month and never seem to make a dent in your balances.
- High APR means roughly 2/3 or more of each minimum payment you make goes to paying off interest charges instead of the actual debt you owe.
- When you get a new credit card, it often has an introductory interest rate or may have 0% APR for a period of time. That’s good at first, but once the introductory period ends your rate and monthly payments can increase significantly.
- If you miss a payment and penalty APR is applied it can double the already high interest rate you’re paying. In this case, the minimum payment may not even cover accrued interest charges for the month.