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How to Break the Trend and Tackle Mounting Credit Card Debt

The average credit card debt in the United States has emerged as a rapidly growing problem. According to financial literacy website Motley Fool, in the last year alone, the total credit card debt in the United States rose by a whopping $38 billion with no signs of slowing down. A major cause of this phenomenon is high inflation, which leads to more expensive everyday essentials and, hence, exacerbates the need to increase credit card usage, a spending habit that naturally raises debt.

When comparing the financial health of Millennials, Gen X and Gen Z, Gen X carries the highest credit card debt, as noted by the website NerdWallet. In addition to age, education level affects this relationship as well. In particular, those with a college degree tend to have much higher credit card balances than those with only a high school diploma, the group with the lowest balances.

In response to these trends, you may wonder how to properly manage the accumulation of credit card debt in case it arises. According to personal finance website The Balance, in order to better pay off credit card debt, it is vital to create a budget and stick to it. Additionally, a balance transfer card can be a great way to pay off credit card debt because it allows you to transfer your balance from one card to another with a lower interest rate. Consolidating debt is also another option where you can take out a loan to pay off your credit card debt and have only one single payment to make to the lender instead of tracking multiple payments.

With this advice in mind, it is extremely important to remember that credit card debt may be a sign of financial stress, so getting help is also a necessity. There are many outlets to receive such help, as listed by The Balance, like reaching out to a certified financial advisor, utilizing online tools and research, or finding a debt relief specialist.

To conclude, while the average credit card debt in the United States is a growing problem that affects all generations, there do exist ways to take back control. Creating a budget, using balance transfer cards, consolidating debt, and seeking help if needed are all valid ways to aid in achieving personal financial agency and stability in light of this growing problem.


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