We’re often told a lot of statistics about debt in our economy. For example, it’s said the average consumer owes $9,000 in debt to credit card companies. Unfortunately, these statistics often lack context and end up misleading us about the true impact of consumer credit card debt on our economy.
While the average credit card debt might be around $9,000, the median consumer credit card debt is much lower: $2,200. The median is lower because a lot of consumers (more than 50%) don’t owe any credit card debt at all.
Some economists don’t think this lack of credit card usage is a good thing.
Of course, if everyone follows our advice, there won’t be a problem. We advocate for people to use their credit cards but to pay off their balances in full every month. This approach means no credit card debt dragging individuals down, but plenty of consumer spending and economic activity.
-min.webp)
We don’t think you should use credit cards just because the economy needs to be stimulated. Instead, we recommend prudent credit card use because it’s beneficial for your individual credit rating.
If you’re someone who simply can’t have a credit card at the ready because you know you’ll max it out and get yourself deep into consumer credit card debt, here’s what we recommend:
Since over half of all consumers don’t have any consumer credit card debt, we know it’s possible for the other half to get there as well. Our counselors have been helping consumers like you achieve financial freedom for four decades. Call us for a confidential counseling session that is offered free of charge. If you need help with credit or debt, or want to learn more about budgeting or personal finance, get started with free, confidential counseling and education right here at Credit.org.
