As documented by USA Today, American credit card debt has reached astronomically alarming rates.
The Current State of Credit Card Debt
Countless Americans are quite literally engulfed in seemingly insurmountable credit card debt. According to a YouGov survey, 35% of adults do not foresee themselves escaping the ball and chain known as debt. Moreover, an additional 33% of indebted Americans have no idea when they will completely pay off their dues. The Federal Reserve reports that overall credit card debt has reached a shocking total of $1.02 trillion dollars.
Analysts have noted just how problematic the aforementioned findings are:
“With credit card debt currently at record levels, it’s frightening that so many Americans do not have a plan to get out of the red. Simply put, there’s only so much credit card debt Americans can absorb without it causing real problems.”
How Can Americans Prevent and Pay Off Debts?
The first and most effective method of preventing debt is simply living within one’s means. Americans should refrain from making unaffordable purchases. Furthermore, Forbes notes the benefits of owning fewer credit cards. A lesser amount of credit cards makes payment management easier whilst encouraging Americans to control their levels of spending. However, regardless of the quantity of one’s credit cards, they should still abstain from living above their means.
Despite the advantages of debt prevention, this is not an option for tens of millions of Americans. USA Today encourages people in this situation to observe interest rates on their cards, make punctual payments, and seek out better rates.
Finally, USA Today’s 10 Week Plan to engender credit card debt reductions may prove helpful to many afflicted Americans.
The step-by-step plan reads as follows:
- Lower your monthly bills.
- Cut back on cable and TV bills.
- Learn how to reduce your electric bill.
- Invest and reduce your water bill.
- Save funds on groceries.
- Reduce the cost of daily transportation.
- Cut down on automobile charges.
- Reduce lodging expenses, applicable for both renters and homeowners.
- Lower costs associated with entertainment purposes.
- Save money on your internet bill.
Too many Americans are suffering from the plethora of negative offshoots which accompany excessive credit card debt.