Crazy Money! Household Debt is Rising
It’s Crazy Money Day!
A recent NerdWallet study found that the average household debt has jumped to $165,000. That’s up 8% from the previous year. Even though average student loan debt has dropped slightly, mortgages, auto loans, and overall debt is now up. More and more people are carrying crazy amounts of credit card balances. TransUnion reports that the average credit card balance is now $5,500. That’s up 13%. The overall cost of living rose faster than personal income. Many claim they’re going into debt just to pay for necessities. Nearly half of all cardholders are carrying debt from month to month. Interest rates make this crazy expensive. Interest rates have increased to almost 20% yet many people don’t even know what their interest rate is. Proverbs 22:7 says the borrower is the lender’s slave. Breaking free requires a strategic plan. So if you’re ready, I’ve got some tips to help you on the journey.
First, I want you to pray! Thank God for all you have, then ask Him to grant you motivation and self-discipline. Next, if you expect a tax refund, file now and determine to apply that money to debt reduction. Apply for a balance transfer card. Please read all the fine print so can avoid any penalties. Also, apply the avalanche or debt snowball payoff method. Lastly, resolve to not add to your debt this year.
And if you’re carrying a crazy amount of credit card debt, I want you to contact Christian Credit Counselors. They’ll create a debt management plan just for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc.