Average Credit Card Debt by Age is key to understanding credit card debt in the first place. It is much easier to pay high interest rates on credit cards when you are young, because credit companies see this as a high risk investment. Average Credit Card Debt by Age reveals the average credit card debt by age ranges which can affect your financial future. Most people start out with credit cards as young adults, and some never leave those accounts.
First up are the average credit card debt by age in current dollars. Note how plastic related debt begins low and rises, and tops out at about 55 to 60 years old. These are prime earning years for most credit card users, and so they can better handle the higher level of unsecured debt. And the median annual income of that age range is well above what many American families actually have available.
Many American’s are stuck in situations that they really didn’t get into, such as working for themselves or being laid off. These people end up in situations where their average credit card debt is considerably higher than the annual income earned. This is due to a number of different factors. Some of the reasons may be legitimate, but many are based on financial decisions which will be hard to reverse, should they occur.
The other thing that causes problems for many americans is that they are using credit cards to buy things that they would otherwise not have been able to afford. Many of these individuals are just “marketers” looking for ways to make more money, without paying attention to what they actually spend. It is no wonder that the average credit card debt of this population is so high.
The first way that we can break down this average credit card debt by age group is to look at the types of debt which are common in this demographic. We find that most americans are carrying some type of student loan debt. This tends to start when an individual is still a college student. Subsequently, most americans will find that the bulk of their credit card debt is connected with revolving debt. These are loans that will charge high interest rates over a relatively short period of time. And, they will generally come due after only a few months.
Most of the individuals who have average credit card debt by age will also have a home mortgage loan tied up with their debt. The reason for this is that most people who have a mortgage loan also have a credit card payment due on the same day. And, if they do not pay this payment, it will often result in a foreclosure. This means that many people who own real estate are actually being forced to sell this property because of their inability to meet payments on credit cards and their mortgage. While this may not be good for the economy, it is better than having real estate foreclosed on.
Most people who have average credit card debt by age are also saddled with a host of other expenses that they are unable to pay. These expenses include medical bills, utility bills, groceries, etc. Most people tend to get themselves into so much debt because they are using their credit cards to purchase things that they need to survive. They end up in a situation where they do not even have enough money available to meet their basic needs.
If you look at the average credit card debt by age group, you will find that many of these people will have a low or non-existent annual income. This means that they probably do not have enough money each year to meet their basic living expenses. Unfortunately, most Americans are living paycheck to paycheck, which means that they do not have extra money available each month to cover unexpected expenses. Because these expenses are usually unexpected, most Americans end up getting behind on them. In addition to having a low or non-existent income, many of these people have already maxed out their credit cards. If you are an American who is looking to get your credit card debt reduced, there are some solutions that can help you out.