There has been consistent growth in the four main areas of debt — home, auto, student loans and credit cards. Credit card debt balances are reaching an all time high in America. Credit cards are actively used by over 176 million American citizens today. This includes the number of people who also are using easily accessible retail credit cards. Four credit cards is the average number of cards a borrower has in the United Stares. Therefore, this number is likely to continue to rise. The new rate increases by the Federal Reserve Debt will result in consumers paying billions more in interest charges and fees across the board. Currently, Americans are paying over $113 billion in card interest and fees. This number is rapidly continuing to grow each year.
Debt Affects Everyone
Credit card debt affects people of all income levels, but low income earners are burdened the most by it. Throughout all levels of income, the average individual card balance is $6,348, according to Experian. Although many believe millenials to be the higher spenders, the baby boomer generation surpasses all other generations in terms of debt balances. The average amount owed varies across the country. Iowa comes in as the lowest amount per borrower at $3169.19. Alaska comes in at the highest amount per borrower at $5879.85. According to a Consumer Financial Protection Bureau study, the amount of debt not paid in full each month by Americans is over $682 billion.
MDS Has Proven Ways to Help Fight This Battle
Mediator Debt Solution coordinators are passionate about helping their clients become debt free. Mediator Debt Solutions can get you debt free in as little as twelve months. We focus on creating a personalized approach for you and your current debt situation in order to yield the best results. First, a special savings account is created for you for the duration of twelve to thirty two months. Our employees then negotiate with your creditors to reduce the debt you owe. Once a settlement is reached, your balance is reduced and the special savings account is used to pay off your debt. We at Mediator Debt Solutions pride ourselves on being able to give our clients the best approach to living their best life.