Trillion with a “T”

A CNBC story this week digs into the details of America’s record $1 trillion in total credit card debt. According to an Experian survey Americans average over $6,000 per person in credit card debt.

If you dig into the numbers, it’s even more striking. If you only look at households that have credit card debt (removing those who pay them off in full every month, or don’t have credit cards at all) the average amount owed balloons to almost $17,000! That average household pays about $1,300 a year in interest alone. That means that by using credit cards, and not paying off the balance, they’re making those purchases more expensive than they need to be.

Ok, so it’s a problem. What should you do about it? If you’ve got credit card debt the first step is to know exactly how much. Adding those cards to BrightDime will show you exactly how much you owe, and to whom. Then make sure you’re paying the minimum on all cards each month. If you don’t, you’ll rack up fees in addition to interest. Then start paying off the card with the highest interest rate first. That strategy means you’ll pay less in total over time than other methods. We’ll help you keep track of your progress with an automated goal that shows you how much you’ve paid off, and how much is left to go. Still not sure? Talk to your BrightDime coach about how to get started.