Facts and Figures: What You Should Know About Credit Cards, Debt, Interest, and Money
Here are some interesting figures I had put together ranging from a few years back to the present. Interesting figures to say the least. Read through and see how you stack up. It may be time to make some positive changes:
Did you know…?
- The average APR for standard credit cards is over 16%, sometimes as high as 24.99%.
- If you’re late on any payment to any creditor, you could be subject to a default rate as high as 29.99% on your credit card accounts.
- About 1 in 3 credit card holders makes only than the minimum monthly payment.
- 38% of credit card holders carry a balance from month to month.
- 50% of American cardholders have been carrying a credit card balance for two or more years.
- The average American household that continually carries debt pays around $904 every year just in interest.
- There is more than $931,000,000,000 (nine hundred, thirty-one billion dollars) in credit card debt in the United States.
- The average outstanding credit card debt is $5,700 per household.
- The average undergraduate college student has approx. $2,500 in credit card debt and an additional $32,731 in student loan debt when he or she graduates.
- The average credit card debt as a percentage of household income is 11.6%.
- Two out of ten Americans (20%) admit to living beyond their means regularly.
- More than one-quarter of households stated they’ve used a payday loan, title loan, rent-to-own or pawn shop in past five years.
- 20% of Americans have paid their credit card bills late (30 days delinquent).
- In 2017, there were 767,721 non-business bankruptcies.
- Potential employers, landlords, lenders, and even automobile insurance companies often look at an individual’s credit report before deciding to offer them services.
- Payments are applied toward the lowest interest-bearing portion of credit card balances first, meaning high-interest portions such as cash advances are last to be paid off and generate the highest interest charges for the cardholder.
- A grace period means you have between 20 and 30 days to pay off your credit card balance without being charged interest. However, as soon as you carry a balance from one month to the next, interest starts accruing immediately on all subsequent purchases until your balance is again $0.
- Many sources advise consumers to pay their credit card balances every month. This could be a different time for every credit card. Check your statements to verify when your billing cycle ends. You’ll want to make your payments before this date.
Do You Have Questions About Credit Cards, Debt, Interest or Money?
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