- In research for my upcoming book, been looking at statistics on credit card debt
- Why credit card debt is not just an income or age issue
- 3 ways to avoid credit card debt
- Why I don’t own a credit card
- Quote of the lesson from Mark Cuban
In doing some research for my upcoming book, on how debt free people think, I’ve been doing a lot of research lately on debt statistics. Recently I did some research on credit card debt and the recent surveys and statistics coming out in regards to credit cards and their usage are quite startling.
- Gallup found in 2014 that 71% of Americans own at least one credit card 
- As of March 2016 38.1% of households that have a credit card have a balance at the end of each month with an average debt of $16,000 
- Among all US households the average credit card debt as of 2016 is $6,184.16 
- Among those who carry a credit card balance the average household will pay $1,292 in interest 
- Total Outstanding US Credit Card is $762 billion
- Credit card ownership by Age:
Age Range Percent that own a credit card
- 56% of Undergraduate students owned a credit card in 2016
- Credit Card Debt by Age as of 2016
Age Range Average Credit Card Debt
- Average Credit Card Debt by Income as of 2016
Income Range Average Credit Card Debt
< $25,000 $3,000
$25,000 to $44,999 $3,900
$45,000 to $69,999 $4,900
$70,000 to $114,999 $5,800
$115,000 to $159,999 $8,300
- Average annual credit card interest cost by household income in 2016
Annual Income Range Average annual interest paid
Less than $21,432 $677.43
More than $157,490 $2,515.05
- Annual credit interest paid by employment status in 2016
Employment Status Average annual interest paid
Other, not working $1,554.57
- Average Credit Card Debt by Gender
Gender Average Credit Card Debt
What does this information tells us? What I noticed was that credit card debt isn’t just a thing for those who don’t make a lot of money or are young. There are people in their 50’s and 60’s and those make well over six figures that have credit card debt.
The fact that we as a nation have $762 Billion in credit card debt is absurd. So today’s show I share ways to avoid credit card debt in the first place. On the surface they might seem basic, but a lot of times when it comes to personal finance, basic is usually the best answer.
- Don’t have a credit card in the first place.
- Do a monthly budget
- Have an Emergency Fund
We break down each of those ways further and share why whether or not you carry a balance on your credit card is not a good measure of whether it is wise for your to use one.
Other resources mentioned on today’s show
- How to rent a car or get a hotel room without a credit card
- Want to earn money on your credit card? Pay it off
- Beware of the Corporate Credit Card
- My Take on Credit Cards
- 0% Credit Card transfers
To send in your questions email me at Jon@JWFinancialCoaching.com
Today’s quote of the lesson is brought to you by Audible.com
“Credit Cards are the WORST investment you can make” ~ Mark Cuban
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