Most Americans would prefer to not have any kind of credit card debt, but those that do have credit cards tend to keep some amount of debt on them. The average American actually has two credit cards and the average amount of debt on each card is about $4,400 according to Experian. This is taken from data as current as June 2015.
This one figure does not provide a complete picture of our nation’s credit card debt situation because a lot of borrowers pay off their balances in full at month’s end. There is a lot of credit card debt being reported that may not be long term debt. As for unpaid balances carried over the long term, the average number is lower — $3,573 for average credit card users according to a Gallup poll performed in 2014. That’s still very high. Paying $100 per month on that balance wouldn’t pay it off for four years if the annual interest rate were 15 percent.
It is important to remember that everyone makes use of their credit cards differently. For people trying to determine whether or not they are truly in the throes of a debt problem, it is important to ask: Are you struggling to pay your bills each month? Do you frequently pay your bills late because you can’t afford to pay them on time?
Kentucky residents who answered yes to these questions might want to consider bankruptcy or another type of debt resolution strategy. Ultimately, speaking with a bankruptcy attorney may be the best way to determine how bad a debt situation is, and whether or not it warrants bankruptcy proceedings.
Source: credit.com, “How Much Credit Card Debt Does the Average American Have?,” Christine DiGangi, Jan. 06, 2016