The average American family has credit card debt of more than $9,000, and many people owe much more than this. Unfortunately, people end up in this situation because of a wide range of unplanned events. In fact, a lot of people have used their credit cards responsibly for a long time, but when something bad happens, they need their credit cards as a safety net.
Due to high interest rates, this situation tends to "snowball," making it almost impossible for the average American to pay off credit card debt in a reasonable amount of time. It's no wonder that people can't get ahead; look at how much interest is added to many of these accounts every month:
Credit Card Debt Amount Interest Rate Interest Paid Monthly
ABC $20,000 29.99 percent $499.83
DEF $15,000 28.99 percent $362.37
GHI $25,000 24.99 percent $520.63
JKL $20,000 29.99 percent $499.83
TOTAL $80,000 $1,882.66
If interest is being added at a rate of nearly $2,000 per month in some cases, it's just not possible for the average family to pay off their credit accounts by just making the minimum payments each month. Instead, they will need a much larger amount to even make a small dent in their credit card balances.
If your credit card debt is out of control and you're in a similar situation to the ones above, it's important to take the steps needed to pay off your accounts much sooner than it will take if you keep making monthly payments to your credit card companies.
You have options, which is good, and I strongly suggest that you start looking at these options seriously and research each of the following:
- Credit Counseling for Consumers
- Bankruptcy
- Consolidation of Debt
- Debt Settlement
You may have to give up some of your time to do research and find the best solution for your specific situation, but you deserve a break from the high interest rates you're paying. I can tell you for sure that as soon as you finish your research and make your choice, you'll breathe a sigh of relief. It's time to stop worrying about your debt and start living again.
