According to Nerd Wallet’s 2019 American Household Credit Card Debt study, the average amount of credit card debt within an American household is around $6,591. This might not seem like much compared to the average $27,978 in auto loans or $46,954 in student loans owed in an average household, but the debt created by credit cards can be hard to eliminate.
Credit cards often have high-interest rates, extremely high penalties for missing payments and other issues that can result in them being hard to pay down. With monthly payments that may be substantial with no significant decrease in what’s owed, it’s no wonder so many people struggle with them.
Credit card interest adds up, and the study found that households with the average credit debt pay around $1,162 each year in interest. That’s money that likely could have been spent in other ways.
So, what can you do if you have credit card debt? If you can’t afford what you owe, there are multiple possible solutions. You can negotiate with creditors or get another job. You could attempt a debt settlement.
For many, the best option is bankruptcy. With bankruptcy, it’s possible to have unsecured debts, like credit card debts, erased. That could help you back in control of your finances and make it possible for you to use the money you’ve been paying on bills or interest on other, more important aspects of your life.
Bankruptcy isn’t for everyone, but it can be a good solution for some. Our site has more information on how you can eliminate credit card debt and get a fresh financial start. We help good people get out of bad situations.