Average Credit Card Debt On Its Way Down!

 

The Average credit card debt is falling in the United States. Amid fears of the sluggish economy, and due to credit card companies taking fewer risks with customers, people are using credit cards less and less.

Something like 40% of homeowners are underwater during the first three months of the year. This is due to the average credit card debt reaching $15,000. Luckily the past few years have seen a decrease in this statistic, and folks seem to be getting back on their feet financially. For years credit card companies took anyone and everyone, and extended credit like it was an endless supply. The downturn of the economy has been putting a crimp in this practice, and credit card companies are actually shedding customers as more and more of them find themselves unable to pay back their debt.

Too Many Families Relying On Credit Cards For Too Much

Increasing numbers of people and families have found themselves in the position of paying for everyday expenses like groceries and clothes with credit. Paying insurance premiums with cards is becoming all too common too. It is now possible to pay your income tax with a credit card! Living on your credit cards is a slippery slope that s hard to get off of once started. $40,000-$60,000 balances are not unheard of, and in fact are becoming commonplace.

Bank Issued Credit Cards Lead The Way

An interesting statistic is the fact that the majority of credit cards are bank issued. A whopping 97% of homes with a credit card have a bank card, while a distant second place goes to store cards with just 56%. Even further back are gas cards, coming in at 11%. Perhaps this is due to stores charging a higher interest rate on balances, but miss one payment on a bank card, and you’ll be eclipsing those paltry 24% rates with huge 35% rates!

The Average credit card debt falling in the US is a great trend to see. As more and more people get tired of owing and paying huge interest rates.