Americans are projected to break the record for credit card debt once 2017’s books are closed.
WalletHub projects an increase of $50 billion for last year for a total of $1 trillion dollars of credit card debt.
The finding was a shock to Marie Giffen of Liberty Township- who doesn’t use credit cards.
“I can’t believe that. That is a lot of debt and it is very surprising people are spending that much on credit cards- that’s crazy,” said Giffen.
Trotwood’s James Shells wasn’t surprised.
“I’m an accountant, I see it all the time. People want things and don’t have the cash so they get credit and simply borrow,” said Shells.
WalletHub released its “2018 Cities with the Highest and Lowest Credit Card Debt” analysis today which breaks down median debt for hundreds of U.S. cities.
Darien, Connecticut had the highest median credit card debt at $7,100.
The lowest median credit-card debt was in Forest Park, Georgia, at $1,100.
For cities in the Miami Valley, WalletHub estimates it will take someone in Beavercreek eight months to pay of the median debt of about $2,646, in Miamisburg it would take nine months to pay of the median credit card debt of $2,323 and in Dayton it would take 13 months to pay of a $2,138 debt.
“Credit card companies are there to make a profit and people forget that the profit is at their expense,” said Dolly Warren, a credit counselor with Graceworks in Dayton.
To start paying down those balances, Warren says you should:
-set a goal
-create a budget
-examine your statements
“Snowballing” is the tactic of making the largest payment to your most expensive credit card and once it’s paid off put all the money you were using to pay off that balance toward the next highest card, etc.- until your credit cards are paid in full.
Get started as soon as possible because WalletHub estimates the December interest rate hike will cost Americans over a billion dollars in additional finance charges this year.