As Credit Card Debt Hits $1 Trillion, Here Are 5 Ways to Pay off Your Balance
The economy is racking up the records this year, from the highest interest rates in decades to the lowest housing inventory in recent memory. The credit card industry just broke a record as well, as the cumulative American credit card debt recently reached $1 trillion for the first time ever, according to a report from the Federal Reserve.
A separate report from credit bureau TransUnion says the average consumer carries a credit card debt of $5,947 right now — the highest in a decade.
If you're like most Americans, you probably noticed yourself becoming more dependent on your credit card in the last couple of years. Runaway inflation has had many scrambling just to make ends meet, and borrowing money on credit is one of most convenient ways to unshoulder some of that burden.
Beyond their use for buying the basics, credit cards have offered a way for folks to cope with high medical bills, and you can expect them to play a larger role as student loan payments resume soon. While federal loans can't be paid off with credit cards, lots of people will likely resort to putting more expenses on their cards.
These expensive bills, coupled with high annual percentage rates (APRs), which range from 24% for a run-of-the-mill card to almost 30% for specialized cards, are a major factor that brought the country to its now $1 trillion credit card debt hole — an increase of 11% year over year.
