Credit card debt remains an issue for Americans

Plastic money is still popular across the United States. If you’re not careful, it can damage your financial future.

American households average $16,061 of credit card debt, according to a study from NerdWallet, which also says that consumers who carry credit card debt pay an average of $1,292 per year in interest on it.

Whether you’re above or below the average, consider these important points before you use your credit card for your next purchase:

  1. Any amount of credit card debt becomes unsustainable when you lose a job. Keep that in mind before you accumulate it.
  2. All credit card debt is expensive. Pay it off or pay it down as soon as possible to avoid paying interest charges.
  3. Carrying a small monthly balance and paying it off in full each month can improve your credit score.

Most Americans will carry some debt, the key is to identify what you can handle and what is unsustainable long-term. Again, the best solution is to pay off or to pay more than the minimum balance on these cards each month and only use them in emergencies.

Travis Credit Union can help consolidate high-interest debt into a low-interest line of credit. Visit our website to see if a Home Equity Line-of-Credit (HELOC) or personal loan might help reduce your high-interest debt burden.

Don’t forget that we offer Visa® credit cards with competitive interest rates and balance transfer options.

Home Equity Line-of-Credit Personal Loan Credit Cards