The general household seems to have accumulated plenty of credit card debt. The average per family tends to hover at about $8,000 in card debt with a credit card interest rate around 15% or so.
There is such a thing as good or acceptable debt. A mortgage, a college loan, and/or a car loan may very well be acceptable and many times (if not always) necessary. However, you still need to be responsible about living beyond your needs. It’s also wise to look for a very good rate on loans.
And of course there is plenty of bad debt that can be had. The bad debt usually falls in the credit card arena. People use it to pay for food at restaurants, general home supplies and other small items that would be better handled using cash. You can safely use your card to make such purchases as long as you pay off the balance each month or make a sizable payment to get it back to a zero balance as soon as possible. Don’t look at the card as disposable cash, but as serious revolving credit loan. If you don’t have the cash to cover the monthly charges, then assess your budget and cut your spending.
When credit card debt gets overwhelming, sometimes a regular loan, a debt consolidation loan, or even an equity loan may help manage debt. If you go that route, resist the temptation to spend yet more. Otherwise you may find yourself in financial trouble later on. Be well aware of how much you are spending and what you are spending your money on. Resist purchasing items that you don’t need or can’t afford. Credit cards require discipline on your part….. read more »