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A stack of credit cards with a large stack of money behind it

Credit Cards: Friend or Foe? Stats and Tips for 2024

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Plastic power! Credit cards can be super handy for everyday purchases, but using them wisely matters. Let’s dive into some credit card stats for 2024 and explore ways to keep your credit card a friend, not a foe.

Interest rate: The percentage of the loan amount you pay for borrowing the money.

Debt on Deck:

In 2024, the average American carries around $5,700 in credit card debt, according to Experian. That’s like having an extra backpack full of textbooks weighing you down! While the debt burden is slightly lower than last year, it’s still important to use credit cards responsibly.

Interest in Interest:

Watch out for credit card interest rates, which can be like sneaky fees that gobble up your money. Right now, the average rate is around 24.59%, according to LendingTree. That means for every $100 you owe, you could pay nearly $25 in interest charges alone! Ouch!

Total Tally:

Adding up all the credit card debt in the US, we reach a whopping $856 billion as of 2023, according to the Federal Reserve. That’s a number larger than the population of the entire planet! It shows how important it is for each individual to manage their credit wisely.

A credit card with a large stack of money behind it

Credit Card Compass:

Now, let’s get to the good stuff! Here are some tips to keep your credit card a valuable tool:

  • Track your spending: Know where your money goes to avoid overspending.
  • Pay your bills on time: Missed payments hurt your credit score and lead to even higher fees.
  • Only borrow what you can afford to repay: Don’t let the plastic tempt you beyond your means.
  • Compare interest rates: Choose a card with a lower rate to save on interest charges.
  • Consider secured cards: If you’re rebuilding your credit, these cards require a deposit but can help you improve your score.
  • Seek help if needed: Don’t be afraid to talk to a credit counselor for personalized advice.
A stack of credit cards with a large stack of money behind it

Remember: Credit cards are powerful tools, but like any tool, they require responsibility. By using them wisely and following these tips, you can keep your credit score healthy and your wallet happy!

Sources:


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