How much credit card debt do other people have?
A lot of times as people are putting together a budget and spending plan to get themselves out of debt, they wonder how much credit card debt other people have. Often, this can help to answer the questions that people have about how much debt is too much, and whether or not they need to take steps to reduce their debt.
Of course, it’s important to realize that the amount of debt that is right for you might not be the amount of debt that is right for anyone else. Typically, people with higher incomes and more assets are better able to manage credit card debt than people who are starting their careers. Unfortunately, it seems as if the people who hold the most credit card debt are the ones who are least likely to handle it responsibly.
Sadly, the group of people with the most credit card debt are one of the groups least able to pay it. Young professionals; people who have just graduated and are working to get themselves established in a career are the group of people most likely to carry balances on their credit cards. The fact that very few people in this group have a home or an emergency fund makes this very dangerous. Having their hours cut at work or losing a job can mean that it will become impossible to pay their bills within a matter of weeks.
The group with the fastest growing rate of credit card debt is senior citizens and retirees. While this group traditionally made sure that they were debt free before leaving the workforce, many older people are discovering that they have overestimated their retirement income and/or underestimated their expenses. To make up the difference, many of them have turned to credit cards. Unfortunately, without the ability to earn extra money, the payments on this growing debt eat up a large portion of their income.
Fortunately, there are ways for both groups to deal with this problem. A debt consolidation loan can significantly reduce the amount that a person spends on his or her debt every month. That allows them to free up cash in their budget to build up their savings or pay other bills.