Average Credit Card Debt

[MomToOne]

I've been skimming around the board and notice many, many people that say they have 6, 7, 8 and even 9!! credit cards.

Having that many cards is not a problem. Carrying balances on that many cards is. There are many people that do not carry balances on credit cards, they pay them off every month - those people could have 1000 and not have a problem. Others who carry debt on a card can very well be in trouble with just 1 card.

 

[disykat]

ETA: IMO, any debt is too much. However, if you are finding it difficult to meet your financial obligations and you are living paycheck-to-paycheck with no savings safety net, most people would agree that you have too much debt.

I think there's a lack of understanding on many people's parts that they AREN'T meeting their financial obligations if they have to put it on a credit card in order to afford it. Many people believe that their credit limits are money they have access to and consider themselves still in the black, not in the red, if they can meet their minimum payments.

I think many people, maybe even the majority find themselves in the red at some time in their lives. Maybe through consumer debt, maybe student loans, maybe a car or house where your loan is higher than the current worth of the property. The problem comes when people really don't even recognize that they are in the red and keep accumulating debt because they think it's perfectly acceptable to do so.

I believe there's a place for credit, however I think the problem comes when people don't understand that having debt you don't have the current means to pay off means you are functioning with a negative cash balance. IE - underwater. It doesn't take very much water to drown, despite what a lot of people like to think.

 

[Marionnette]

I've been skimming around the board and notice many, many people that say they have 6, 7, 8 and even 9!! credit cards.

Having that many cards is not a problem. Carrying balances on that many cards is. There are many people that do not carry balances on credit cards, they pay them off every month - those people could have 1000 and not have a problem. Others who carry debt on a card can very well be in trouble with just 1 card.

I agree with MomToOne. I have many, many cards. I don't use them all and I don't carry a balance on any of them. To me, it's not a problem to have so many. It would be a problem if I were to max even one of them out!

 

[ManyMinnie]

I agree with MomToOne. I have many, many cards. I don't use them all and I don't carry a balance on any of them. To me, it's not a problem to have so many. It would be a problem if I were to max even one of them out!

If you don't use them, why keep them?

We don't carry a balance, either, but between the two of us, we have 3 cards that have high credit limits. It is more credit than we would ever need. Two of them are rewards cards.

I had something else typed out, but realized it was not helpful to what the OP was asking.

 

[MomToOne]

If you don't use them, why keep them?

I know many people who sign up for cards just to get the sign-up bonus. If they are going to offer it, and the card presents no temptation to the person to run up a balance and their credit score is fine, why not?

 

[AB6876]

Credit card debt stinks but if you focus on it you can pay it off. My husband and I had a ton of credit card debt over the past 10 years on and off, high point maybe 30,000 ish...We spent too much money, paid our taxes on them, helped support us while I was out of work, did needed renovations on our home (roof air conditioner) and various other things that at the time were "needed". Stuff happens. We had so much debt at one point in our marriage we could barely make minimum payments. We called the credit card companies, to see if we could get help with interest rates lowered etc. a couple helped most did not. But we did it, with a few hiccups along the way. We are out of debt, it is such a good feeling. We also did it ourselves, we did get a few interest rates lowered however we paid all our debt, did not settle, did not call one of the consumer credit companies. It is a great feeling. We just sent fixed payments. When one would be paid off we would start with the next one. We also used bonus money we got, or any extra money to pay them down.
Good luck... You can do it.

 

[Marionnette]

If you don't use them, why keep them?

We don't carry a balance, either, but between the two of us, we have 3 cards that have high credit limits. It is more credit than we would ever need. Two of them are rewards cards.

I had something else typed out, but realized it was not helpful to what the OP was asking.

I did not say that I don't use them. I said that I don't carry a balance on any of them. There's a difference.

 

[ManyMinnie]

I agree with MomToOne. I have many, many cards. I don't use them all and I don't carry a balance on any of them. To me, it's not a problem to have so many. It would be a problem if I were to max even one of them out!

I did not say that I don't use them. I said that I don't carry a balance on any of them. There's a difference.

.

 

[Marionnette]

I mis-typed the first statement. What I meant to say was that I don't use all of them all of the time. That's what I get for letting my brain get ahead of my fingers.

But it doesn't matter. My point is still the same. I have many,many cards. I carry no balances on them. And why I keep them all is my business.

 

[disykat]

There are lots of reasons to have a variety of credit cards. I pay off every month but still have 6 cards, all of which I use on occasion. I have two main ones, my main one for a cash back incentive, my second one that I only use on-line for airline miles. The other cards are store credit cards that give me perks for using them in their store.

 

[rockawaybeachgirl]

There are lots of reasons to have a variety of credit cards. I pay off every month but still have 6 cards, all of which I use on occasion. I have two main ones, my main one for a cash back incentive, my second one that I only use on-line for airline miles. The other cards are store credit cards that give me perks for using them in their store.

Yep, that's me - although I have more than 6. A few of the many benefits I keep them all for:

- Airline benefits (points, free checked bag, discount on in-flight purchases, priority boarding, etc.)
- 5% cash back on rotating categegories and the opportunity to buy discounted gift cards
- Access to airline lounges
- automatice status at hotels
etc etc etc.

For those that have annual fees, every year before I pay the fee I do a cost benefit analysis to determine if the card is 'worth it'. Most of them are (for me at least!).

 

[ceemys]

I used to have CC debt. It took me over 5 years to pay everything off. You can do it! Just do what other PP stated. Take everything extra you can and put it on one card at a time while paying about $5 over the minimum payment on the other cards. Eliminate most extras. You can treat yourself sometimes, but keep it in check. Instead of going out to eat 5 or 6 times a month, we do two now. Used to always eat out after church and a few other times. Write out a list and keep it visible on what you want to pay off. I put mine on my front door, so I would see it everytime I left the apartment.
I just made my last payment with my tax check and now I am 100% CC and loan debt free. I am saving for my house downpayment that I will close on in November. I also have my new house website open on my ipad all the time. Whenever I want to spend something, I go to that link and look at my goal. Really helps.

good Luck! Hard work and perserverence will help you reach your debt free goal!

 

[Princess Disney Mom]

One strategy is to work at paying off the card with the lowest balance first. Then when done you will feel like you are making progress and take that payment and put towards the next lowest. Keep doing till you are out. Good luck.