Average American Household With Credit Card Debt Owes $15,654, According to Annual NerdWallet Study
Credit card debt remains one of the most expensive types of debt, and households that carry it pay an average of
"With many expenses growing faster than wages, consumers are often forced to take on credit card debt to pay medical bills and other essentials," says
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The 'Why' Behind Debt Levels in the
- Credit card interest is costly and continues to rise. The average
U.S. household with revolving credit card debt pays$904 in interest annually. This interest total will grow to$919 the next time theFederal Reserve increases rates a quarter of a percentage point. - Millions of Americans likely charge costly medical bills to credit cards. Up to 27 million
U.S. adults are putting medical expenses on credit cards, costing consumers more than$12 billion . Consumers who charge medical bills to credit cards pay an average of$471 in interest on these expenses, and take an average of 70 months to pay the balance off. - Major expenses continue to outpace income growth. The costs of major expenses — like medical care and food — have outpaced income growth over the past decade. Median household income has grown 20% in the past 10 years, but expenses have grown significantly more. Medical costs have increased 34% over the same period, while housing and food have gone up, too — 20% and 22%, respectively.
- Total household debt has surpassed pre-recession levels: Total household debt, now
$12.96 trillion , has surpassed the amount owed at the beginning of the Great Recession, which was$12.37 trillion .
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