Credit debt affects many people in the United States! A 2016 report from the American Household Credit Card Debt Study showed that the average American home has $16,061 in credit card debt alone. Add to this student loans, auto loans, and mortgages, and it is easy to see why people sometimes struggle to get by.
As a young professional, you know just how difficult it can be to juggle every aspect of your life. From your personal life to growing your career to managing your finances, there is a lot on your plate. Unfortunately, if you don't stay on top of all these details, it could lead to a challenge that can be difficult to overcome.
It's easier than ever to obtain a credit card. American's have difficulty saying "no," when it comes to credit card offers. As of 2016, the average debt is quite high. The national average for credit card debt, according to the Federal Reserve, is $935.6 billion. This roughly equates to an average debt, per person between the ages of 18 and 65, of $4,717.00. The overall total national average is higher than it has been since 2011, but far less than it was in 2008.
Many of us have been in a short-term financial pinch. It could be that an unexpected car repair, appliance replacement or emergency room visit stretched us thin and left us worried about how to make ends meet until our next paycheck. In those situations, many people will use a credit card, borrow money from a family member or friend, ask their boss for a paycheck advance or dip into an emergency fund to cover unforeseen costs.
U.S. credit-card balances are expected to surpass $1 trillion this year. According to an article in the Wall Street Journal, improving economic conditions have contributed to consumers' increased comfort level with credit card balances. Is that such a great idea? Consumers could be making money mistakes that have a devastating impact on their financial future. Here are a few of the most common mistakes and ways in which you can avoid them.