The Average Credit Debt in America Continues to Rise

October 1,2018 by  
Filed under Free Debt & Credit Information

Every year, the American consumer raises there average credit debt by 12%. Last year, the credit debt average per consumer was $10,300. This year, it has increased to more than $11,000. Without mortgages being included, an average household debt is between $18,000 and $21,000. More than one fourth of United States’ population ranks higher than the nations average credit debt. More than 40% of us are spending 130% more than we make today. By these numbers, we can see that as a society we are sinking to a new level of credit downfall. Meaning that we rely more on credit than ever before to help with things when we don’t have enough cash to pay for it. While this is good for lenders and credit card companies, it is not so good for you and me. Not only are we sinking more and more in debt, we are also easy prey for companies to take advantage of our financial situations. By making it incredibly easy to get credit cards and payday loans, companies are luring you in with incredible deals to start with, then changing the rates after you are hooked. Most of these places will lend to anyone with a check stub or checking account regardless of credit scores, history or credit debt. For people that already have debt or spending issues, this can be adding even more financial troubles to their already existing ones.

In order to fully understand how high the average credit debt in America is, let’s look at some practical numbers. If you make up to $46,000 yearly, you should only be using half of that for your debt. The other half should be used for savings, expenses, clothing and food. If you earn more than $46,000, you can spend 10%-15% more on your credit debt. If you are one of the unfortunate ones that make a lot less than this amount, you may have to spend more than 50% depending on your debt level. If you are having serious debt issues, you may want to seek help to resolve financial situations that you cannot handle on your own. If you have a lot of outstanding debt, this could affect your credit score by making it lower. This in turn can affect your financial future. While your payment history makes up 35% of your credit score, outstanding debt makes up another 30%. Credit scores can range from being average at 690 to the highest at 850. Most of us will probably never see 850 on our credit score since it is virtually impossible to achieve. Lenders don’t like lending to you if you have more outstanding debt than they think you can handle at one time. So most will offer other solutions besides loans when that situation arises.

When trying to reduce credit debt, we can all make a difference. We can all use common sense and good judgment when it comes to spending. By teaching our children responsibility when it comes to paying bills and saving for tomorrow, we can lower the average credit debt and show them that there is a better way of living.


One Response to “The Average Credit Debt in America Continues to Rise”
  1. Paul says:

    Great and interesting information, thanks Mike. My wife and I found site about 2 months ago and thru your recommendation we are now on our way to getting control of our finances once again….

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