Wednesday, December 19th, 2018

What's In It For Me?

  • The average rate of interest on a credit card in the United States is 15% - which means that for every thousand dollars you pay off - $150 goes to the company.
  • Most americans have not seriously considered the power and speed of compound interest in relation to their credit card debt
  • Consumers should do everything in their power to reduce the principal amount - or at least pay off the interest - as soon as possible.
Credit Card Debt Problems Can Be Solved. Don't Be Scared Of Requesting Help From An Expert.

Credit Card Debt Help

Today, the average credit card debt in the United States is around $10,000. This may not seem like an unmanageable level of debt for most people. However, due to the unique nature of credit cards, this amount of credit card debt can quickly spiral out of control and leave consumers in lots of trouble.

How Did It Get So Bad?

One of the major problems with credit card debt is the excessively high rate of interest. The average credit card in the United States has an interest rate of 15%, meaning that for every thousand dollars that you pay off your credit card debt, another $150 must go to the credit card company. If you’re not paying off your credit card debt, then this money is being constantly compounded, which significantly increases the total amount that you have to pay.

The Power Of Compound Interest On My Debt

Let’s use an example to illustrate the power of compound interest. Say you have $10,000 in credit card debt. If you’re currently unable to pay it off, then you may be forced to let it sit for a few years. At an interest rate of 20% - which is not unusual for many credit cards – that amount of $10,000 will turn into an astonishing debt of $26, 960 after only 5 years. If you have to wait another year to pay it off, then that number jumps up to $33,000. Compound interest is a frightening thing when you have credit card debt, and consumers should do everything in their power to reduce the principal amount – or at least pay off the accruing interest – as soon as possible.

How did Americans get into so much trouble with debt? One of the major reasons was a sudden change in the way people viewed credit cards. Half a century ago, credit cards were a privilege reserved for older, more financially-established consumers. Today, most people over the age of 65 received their first credit card at an average age of 41.

Times have changed, however. Credit card companies now advertise the attractiveness of products like rewards cards, and many credit card holders have multiple cards. These cards are becoming available to a wider range of people, like young people who are less financially established.

Today, the average consumer receives their first credit card at 21 years of age. People like this may not understand the dangers of credit card debt, and may only see the free money that is currently available to them. Furthermore, fewer and fewer people take the time to read through the conditions of their agreement. So, while the credit card company may disclose the fees and interest rate structure to every applicant, that doesn’t necessarily mean that the applicant understands them – even if they sign a piece of paper saying that they do.

For this reason, more and more people in the United States are becoming saddled with $10,000 or more in credit card debt. Unfortunately, this has now become the "new norm."

With total U.S. consumer debt reaching as high as $2.43 trillion, there has never been a better time to educate yourself on the dangers of credit card debt. If you already have credit card debt of around $10,000, then it’s important that you look at the debt management options available to you. Whether you choose to go with a debt consolidation plan, or you would rather try to pay off your loan in one lump-sum amount, your entire financial future depends on your ability to control and understand the dangers of the debt situation you find yourself in.

So What!?!

1.)

Compound interest is extremely powerful when applied to our credit card debt and must be clearly understood.

2.)

We may not understand every aspect of this type of debt, but there are people out there that understand it well and can help you.

To get your Free Consultation with a Credit Card Debt expert, simply Click The Button Below:

 

Get credit card debt information delivered directly to your inbox.

Our reputation depends on the security of your personal information.

There will be no spam and no unwanted email.