Who owes how much? 

Every year, Experian releases detailed findings about the state of credit card debt across the United States. And their most recent 2023 report should serve as a wake-up call about this costly debt epidemic: 

The average U.S. consumer carries $6,501 in credit card balances. 

Let that number sink in. The typical American household currently owes over $6,000 just in credit card debt alone. Generationally speaking, Millennials and Generation X are on the biggest hooks: 

• Generation Z (18-26): $29,820 

• Millennials (27-42): $125,047 

• Generation X (43-58): $157,556 

• Baby boomers (59-77): $94,880 

And make no mistake, credit card interest is the costliest kind of consumer debt. According to Forbes Advisor’s weekly credit card rates report, the average credit card interest rate is 27.65%. Of course, the annual percentage rates (APR) you pay on your own credit cards might not match up with the national average. Credit card APRs can vary widely based on a number of factors, from your credit score to your debt-to-income ratio and beyond. 

So what factors are fueling this unabated accrual of high interest card debt burdening so many households and individuals? 

The most common causes of credit card debt 

For many Americans, living with ongoing credit card balances has almost become a way of life due to a combination of factors like: 

• Stagnant wages/rising Costs: With wage growth lagging inflation in many sectors, many rely on credit as a financial band-aid when earnings no longer cover basic living costs. 

• Emergencies and unexpected expenses: Medical bills, sudden home/auto repairs, or other major unforeseen costs can quickly max out credit limits for those lacking adequate emergency funds. 

• Easy access to credit: Seemingly endless credit card offers and credit line increases make it easy to continuously burden high-interest cards as spending expands. 

• Poor financial literacy: A lack of understanding around concepts like compound interest and minimum debt payments allows balances to accumulate beyond control. 

So now that we understand the concerning current state of consumer credit card debt woes, what solutions are available for breaking this vicious debt cycle? 

Viable options to get control of card balances 

Fortunately, you have a number of potentially effective strategies at your disposal, including: 

• Balance transfers: Moving high interest card debt to a 0% APR promotional balance transfer locks in lower interest while aggressively paying down balances. 

• Debt snowball/avalanche: By ordering debts and focusing extra payments on one balance at a time, snowball or avalanche methods efficiently eliminate debts over time. 

• Debt management plans: Credit counseling agencies can negotiate lower overall rates and consolidated payment plans to follow a structured payoff on your behalf. 

• Debt settlement: As a last resort, creditors may accept negotiated lump-sum payoffs for less than full balances to resolve delinquent debts, though it tanks credit. 

• Bankruptcy: Personal bankruptcy allows dischargement of credit card debts but comes with severe, long-lasting credit damage for years afterward. 

Need help? Try JG Wentworth 

If you’re one of millions of Americans struggling to manage your mounting credit card debt, we’re here to help. Chances are that if you have $10,000 or more in unsecured debt, you may be eligible for our Debt Relief Program.* We’ve helped countless individuals who felt like they didn’t have a path forward reclaim their financial freedom. Some basic perks to consider: 

• One monthly payment 

• We negotiate on your behalf 

• Average debt resolution in as little as 48-60 months 

• 24/7 support 

• We only get paid if we settle your debt 

If you think you qualify for our program, give us a call today to speak with one of our dedicated debt relief specialists and get any questions you may have answered.