Federal Reserve announced that the credit card debts circulating in America reached its highest point in November 2017. The change in total is very significant, because the sum increased from $11.2 billion to $1 trillion. Knowing this fact, consumers should really start to control themselves from spending too much. The total credit card debt in America nearly equals the total credit card debts in six countries combined: France, Canada, Mexico, Russia, Japan, and China.
If the fact mentioned above is not baffling enough, there are even more surprising facts to discover. In 2015, credit card debt in America increased by 71 billion dollars, with 52 billion dollars of credit card debt made in the fourth quarter of the year. This fantastic amount of spending is done for the holidays. The average household has more than five thousand dollars of credit card debt.
What actually causes the credit card debt in America to reach a fantastic number? According to an expert in economics, this is caused by the increase in credit card usage by Americans. Compared to other regions, like Asia, this number is far higher. It is because people in Asia prefer to pay in cash. In Asian countries, most people don’t use their credit card much.
Apart from the irresponsible usage of the credit card holders, the promotion of credit cards issued by banks also contribute to the high amount of credit card debt in America. Banks, even the reputable ones, “generously” offer bonuses and prizes to their customers who frequently use their credit card. The more you use your credit card, the more benefit you get. Sadly, only a few people realize that the consequences are often bigger than the small, negligible benefits.
Is There Any Solution to the Credit Card Debt in America Problem?
Yes, there is! One of the solutions to this crisis is by using balance transfer cards. If used correctly, a balance transfer card can help people pay off their debts. Sadly, many Americans who own the balance transfer card don’t know how to utilize it properly. This also causes the credit card debt in America problem to be a long-term problem.
Basically, it works by transferring the balance of your credit card with high interest to a card that has little to no interest. It’s as simple as that. Of course, this only applies for a limited period. Usually, a bank sets a time frame between 6 and 21 months. Although limited, this will definitely help to resolve the problem of credit card debt in America.
When people still have remaining debts from the previous month, utilizing the balance transfer card can help them pay the debts off within a prolonged time period. It enables them to collect adequate money without added stress. So, before you decide to use a balance transfer card, calculate how long you need to pay off all your debts. In any situation, using the balance transfer card is beneficial in helping to pay off debts. If more people know how to utilize it, the credit card debt in America problem will soon be resolved or at least reduced.