How does your credit card debt compare to national averages?
When you are feeling stressed about debt, it can sometimes feel like you are the only person in the world with money issues. The reassuring news is that you are actually in good company. America runs on debt, and recent data shows that many American households have more debt than you might think.
The three largest sources of household debt in the U.S. are, in order: mortgages, student loans and credit cards. In today’s post, we’ll discuss credit card debt data analyzed by the financial website NerdWallet.com.
Statistics can be deceiving if they are presented without much context. For instance, government data shows that average credit card debt among American households is currently $7,281. Does this seem low to you? It should be noted that this average includes households with no credit card debt at all.
Thankfully, NerdWallet provided another statistic that may prove more helpful for gauging how “normal” your debt load is. When you include only households that are carrying debt, the national average credit card debt rises to $15,608.
This is a lot of money, particularly when you consider how high interest rates tend to be on consumer credit cards. If you are struggling under the weight of significant credit card debt, please know that you are not alone and that help is available.
Most or all credit card debt can usually be discharged in bankruptcy. At the very least, a bankruptcy filing can help you restructure your debts in ways that allow you to pay them off manageably.
How your debts are handled will depend on whether you file for Chapter 7 or Chapter 13 bankruptcy. Most people filing for personal bankruptcy will pursue one of these two options. There are eligibility requirements for each.
If you want to learn more about how bankruptcy could help you discharge or manage credit card debt, please visit the credit card debt relief page on our website.