Good News About Credit Card Debt?
Our brains are quickly conditioned to click on clickbait but slow to break the habit, even long after finding out that there will be no surprises, only anticlimaxes, if we click. Despite this, we keep clicking on headlines about credit card debt in its capacity as a nationwide problem, and to the surprise of no one, we find out that, collectively, American consumers owe trillions of dollars in credit card debt, and since the price of almost everything has been so high for so long, most of us struggle to make a dent in the principal balance. A new report on CNBC Personal Finance restates much of the same gloom and doom, but it also offers a few glimmers of hope. Don’t let nationwide trends scare you into thinking that your credit card situation is hopeless. Instead, the first step toward taking charge of your credit card debt is to contact a Miami debt lawyer.
Chances Are, Your Credit Card Balance Exceeds Your Monthly Income
The new CNBC Personal Finance report says that the average credit card debt balance per account holder is $6,850. This amount vastly exceeds the amount that most of us earn in a month. This means that, even if you decided that you would put all your income toward your credit card debt this month and catch up on the other bills in the subsequent months, you could not make your entire credit card debt disappear. Throwing all your money at credit card debt and falling behind on rent and utilities is a foolish strategy even if your income is high enough and your credit card balance is low enough. Besides, people who earn thousands of dollars more than that per month live paycheck to paycheck.
Credit Card Delinquency Rates Are Down and Other Mildly Encouraging News
Credit card delinquency is when an account holder goes at least one billing cycle without making a payment. Therefore, the credit card delinquency rate is the percentage of borrowers who are at least one month behind on their credit card payments. The new CNBC Personal Finance report said that in 2024, the delinquency rate was lower than it was in 2023. This is the first time the credit card delinquency rate has fallen from one year to the next since before the COVID-19 pandemic.
The other piece of encouraging news is that consumers’ credit card balances are increasing more slowly than they have been doing in previous years. This means that people are still using their credit cards to tide them over until payday, but their paychecks are sustaining them for more days out of the month than before.
So, How Do You Pay It Down?
You might be able to get out of credit card debt just by paying more than the minimum payment each month. If you cannot do this, settling your debt for a lump sum might be a feasible option.
Work With a Debt Lawyer About Finding Your Way Out of Credit Card Debt
A South Florida debt lawyer can help you find the best way to pay off your credit card debt. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.
Source:
cnbc.com/2025/02/20/transunion-americans-average-credit-card-balance-hits-6580.html
