Credit Card Debt

Credit Card Debt, Debt Relief

Debt Among Older Americans Reaches Record High Levels

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American seniors have seen their debt levels increase significantly over the past two decades.  It is estimated that the total debt load carried by American consumers over the age of 70 years old increased by 543% between 1999 and 2019. It now stands at a record high of $1.1 trillion, according to the Federal Reserve Bank of New York.

Individuals who were in their 60s saw their debt increase by 471%, bringing their total debt load to $2.14 trillion. Seniors were not the only group who saw large increases in their debt, but these two age groups saw the largest increases.

Bankruptcy Law, Credit, Credit Card Debt, Timothy Kingcade Posts

Top Reason Americans Are Carrying an Average Credit Card Balance of Over $6,200

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Credit card debt is a burden for many consumers. Most have a complicated relationship with their credit cards. On one hand, disciplined and modest use of a credit card to make certain purchases can help establish a good credit score. On the other hand, if the balance on a credit card is not paid in full each month, and on time, the balance can quickly spiral out of control.

According a recent study by CompareCards, American consumers are carrying an all-time high of $1.1 trillion in credit card and other types of revolving debt. This figure is up nearly 20 percent from where it was just ten years ago.

Credit Card Debt, Debt Collection, Debt Relief

U.S. Cities Seeing the Highest Increase in Millennial Debt

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Consumer debt is increasing nationwide, affecting individuals in all types of economic and sociographic groups. However, millennials seem to be the generation hit the hardest. In fact, millennials living in certain U.S. cities are hurting the most when it comes to their debt, according to a recent study from LendingTree.

LendingTree found that individuals in the millennial generation, born between the years 1981 and 1996, carried large amounts of auto debt, as well as student loan debt. These two categories made up the biggest portion of non-mortgage debt carried by millennial consumers.

Credit Card Debt

The Worst Ways to Pay Off Credit Card Debt

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Credit card debt is a major problem that plagues so many Americans, with the total amount of credit card debt estimated to be over $870 billion in total. According to data from Experian, the average credit card balance is $6,629. If you are struggling with credit card debt, certain behaviors can be counterproductive and make the problem worse when trying to pay down a credit card balance.

Skipping Payments.

One of the worst things a consumer can do is to skip a credit card payment, intending to pay it next month or forgetting completely. When it comes to debt- unfortunately, out of sight, out of mind does not work. Missing just one month’s payment can result in a sharp increase in interest rates, as well as late fees. The higher the interest rate is, the less likely it is that the cardholder will make any progress towards paying off the principal every month.

Credit Card Debt

4 Habits That Will Help You Pay Off Debt And Remain Debt-Free

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Paying off credit card debt can seem like a never-ending battle. If someone is carrying a high balance on a card with a high interest rate, it can seem like a dent will never be made toward paying off the total amount, especially if that person is only making minimum payments.

Here are some tips to help you pay off credit card debt and keep it off.

  1. Put money into a savings account.

It may seem counter-intuitive, but to pay off credit card debt, it helps to also put money away into savings. According to recent statistics from Bankrate, 29 percent of Americans have more credit card debt than they have money in emergency savings. Even worse, 28 percent of them reported having no emergency savings at all.  When a financial crisis hits, it only takes one unexpected expense to completely drain a small savings account or push that person into debt.

Credit Card Debt, Debt Relief

Tips for Paying Down Holiday Credit Card Debt

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Now that the holidays are over, consumers are about to receive a New Year’s “surprise” in the form of a credit card statement. Those who already had a substantial balance on their credit cards, the extra holiday spending has only added to those balances. According to a report from credit bureau, Experian, the average credit card balance has climbed to $6,629.

You are probably wondering the next steps to take to pay down holiday debt before the interest starts mounting. We recommend taking a realistic approach in paying down the balance over the course of the first quarter of the year. By calendaring and planning out the payments, the cardholder can visualize the end goal of paying off the debt.

Credit Card Debt

Credit Card Debt Worse for those with High Income

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Credit card debt in the U.S. has reached a high of $830 billion, making a six percent jump since last year. Next to personal loans, credit card debt is the second-fastest growing category of debt, according to a recent Experian report. It is reported that the average American consumer carries a balance of $6,200 on his or her credit card. With balances that high, it can be quite difficult for the average consumer to pay off his or her debt.

It turns out that the consumers who are carrying the most credit card debt are those with a net worth of over $100,000 or more, according to a recent study from Bankrate.  Adults who carried net worth between $100,000 and $199,999 are the most likely to carry credit card debt, followed by individuals with net worth between $200,000 and $1 million. People who had a net worth over $1 million had the least amount of credit card debt.

Credit Card Debt, Medical Debt

How to Keep Medical Debt Off Your Credit Cards

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With the cost of medical care increasing every year, many Americans are struggling to pay their medical bills. According to a recent study from NerdWallet, medical costs have increased 33 percent since 2009, while the national median household income has only increased 30 percent. To keep up with these costs, many consumers are forced to pay for their medical bills with credit cards. The problem is credit card interest rates can range anywhere from 10%-30% and come with additional fees and costs if timely payment is not made. Medical bills are expensive and paying them with your credit card will only add unnecessary interest fees to your bills.

Here are some tips that can help you avoid having to put medical bills on a credit card.

Credit Card Debt, Credit Score

Reasons to Check Your Credit Score Twice this Holiday Season

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When it comes to monitoring a credit score, it is important to pay all bills on time and not max out a credit card when relying on one for holiday spending. However, another factor, known as the credit utilization ratio, plays a major role in a consumer’s FICO score. In fact, this number accounts for 30 percent of the average consumer’s FICO score, and it is the second most important part of a person’s credit score next to paying bills on time.

To figure out what this score is, the consumer needs to add up credit limits across all his or her credit cards and then add up the outstanding balance on each card. Divide the total balance owed by the total limits and multiply that by 100 to determine the percentage or credit utilization ratio.

Credit Card Debt, Debt Relief

Credit Card Debt Can Be Bad for Your Health, According to Recent Study.

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Having large amounts of credit card debt can not only stress you out, but according to a new study it can also be bad for your health. The high levels of stress associated with the debt can get so serious that it can adversely affect the person’s health, according to a study from CompareCards.com.

According to the report, fewer cardholders can pay their balances in full at the end of each month. Anything left on those balances roll over to the next month and are compounded even more by interest. Before long, those balances inch closer and closer to the maximum balance allowed. One in three consumers surveyed by WalletHub reported being fearful that they will max out their credit cards when making a large purchase. Most of those polled said they considered a large purchase was anything more than $100.