As more consumers receive credit counseling, an incredibly positive result is a drop in household credit card debt. According to a recent piece by nerdwallet.com, household debt for American consumers went up this year, but mainly due to mortgage and student loan debt. The good news is credit card debt went down by 3 percent. For people who sign up for a debt management plan, credit card debt quickly becomes a burden of the past. The Nerd Wallet research showed the average debt balances for different types of debt. By eliminating credit card debt, it’s easier to tackle all other kinds of debt including mortgages, auto loans, student loans and personal loans.
Looking at the average balances
Sometimes it’s fun to compare yourself to other consumers, getting an idea of what kind of predicament other people face with their finances. A Christian credit counselor gives you complete privacy and helps with a positive approach. Instead of reinventing a formula for success, consider consolidating credit card debt. The debt consolidation approach works for many people who want to find financial peace. As far as average balances, Nerd Wallet found in just one-quarter or three months, credit card debt went down about 3 percent while mortgage debt went up almost 2 percent. Student loan debt went up 1.69 percent.
Figuring out your net worth
When you receive credit counseling, you lay everything out on the table as far as credit card bills. It’s also good to get a financial checkup. Figuring out your net worth is a simple calculation that involves adding up all of your equity, assets, money and then subtracting what you owe. The Nerd Wallet study showed the average balance on mortgage debt is about $171,000. The average auto loan balance is about $27,000, while the average student loan balance is about $49,000. The average credit card debt is much less at about $15,000, but the interest rate on credit card debt is significantly higher. Paying off credit card debt with a debt management plan is a key secret to financial success.
At Christian Credit Counselors, we help you improve your credit score over time with financial education and tools. We help consumers get out of credit card debt by positively confronting their debt. Talk to us about how we work with creditor to lower your interest rate and work out a plan. For more information on credit counseling, please contact us.