Credit card debt at it's highest level in years

Credit Spending Is at All Time Level

in News

The importance of good financial habits — and the needed knowledge to acquire those skills —has led a number of U.S. Senators to introduce legislation declaring April as Financial Literacy Month.

U.S. Sens. David Perdue (R-Ga) and Tom Scott (R-S.C.) said the designation is meant to highlight the importance of learning and maintaining healthy financial habits.

With Americans holding the highest credit card balances since 2008 — at a whopping $1 trillion plus — financial experts said the need for education is clear. Savannah credit card holders in 2018 were carrying an average balance per household of $13,134, an increase of $134 over the year before.

To pay off a credit card with a balance of $13,134 in two years at an 18 percent interest rate would take payments of $655 a month.

Paying just a minimum payment of $200 a month on that same balance would take almost 24 years to hit zero.

Nationwide, Americans are averaging $8,788 per household in credit card debt.

“It’s so easy to swipe that plastic,” Barbara Martin, vice president of operations for GeoVista Federal Credit Union, said. “Young people care more about convenience than interest rates.”

Getting in over your head with credit card debt is not the only problem for those who may be financially “illiterate.”

The impact on lives from not knowing the basics of managing one’s own finances can be costly for those lacking money skills, from higher interest rates and bad credit ratings to wasting money on unnecessary fees just to cash a paycheck.

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Orginal Article by DeAnn Komanecky