Household debt can be a constant worry for many Americans, who agonize over how they’ll cover everything from daily bus fares to their rent or mortgage. The good news is that fewer households have debt, according to a report from the U.S. Census Bureau. The bad news: The households that do have bills have more.
Debt can come in many forms -- car loans, mortgages, student loans, medical debts and, of course, a big one -- credit card balances. About 38 percent of Americans carry credit card debt. In May 2016, they owned about $953 billion, according to the Federal Reserve. That number covers the nation’s revolving debt, which is primarily made up of credit card charges.
When used properly, credit cards come with plenty of benefits. They are convenient and can play an important role in building credit scores, which are critical for securing loans for a house or car, for instance.
But, it’s also easy for credit card spending to get out of hand … and that can be costly. According to creditcards.com, the average interest rate for a credit card is 15 percent. If you fail to pay off your balance monthly, your costs for the items you purchased on credit will increase exponentially.
Here are seven ways to use credit wisely:
As long as you control your credit cards -- and your spending -- you’ll ensure that those credit card balances don’t control you.
The team at CESI is committed to helping you make wise financial decisions and to helping you understand how to get out, and stay out of debt. For a free debt analysis, contact us and find out how we can help.
Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
CESI is NOT A LOAN COMPANY