According to CreditDonkey.com, the average American has a credit card balance of $5,331. Furthermore, 55 percent of those with credit card bills in Virginia and throughout the country don’t pay off their balances in full each month. Individuals between the ages of 45 and 54 tend to have the most credit card debt as they are likelier to be able to afford higher balances. Younger Americans and those headed toward retirement tend to have lower amounts of credit card debt.
Individuals who are 45 to 54 years of age have an average credit card balance of $9,096 compared to $5,638 for those who are 75 and older. That is the lowest of all age groups analyzed in the study. People who are 35 and younger have average credit card debt balances of $5,808, which is the lowest of all other age groups.
Researchers caution that debt balances themselves don’t always indicate how easy they are to repay. Instead, it is important to look at a person’s overall debt-to-income ratio. The lower the ratio, the easier it can be for a person to manage credit card spending and his or her debt in general. Someone who makes $24,999 per year could have a harder time paying a $3,000 debt balance compared to a person making $160,000 with an $11,200 balance owed.
Those who are seeking relief from overwhelming debt may be able to find it by filing for bankruptcy. This process may allow an individual to put a stop to creditor phone calls and other debt collection activities. This is because most debtors are entitled to automatic stays of creditor collection activities when the case is filed. An attorney may explain the process of filing for a Chapter 13 bankruptcy or the benefits that may be derived from it.