Statistics Show An Average Household In US Carries Around $7,200 In Credit Card Debt

(Newswire.net — January 31, 2017) Tallahassee, FL — Credit cards are generally thought to be beneficial. As a matter of fact, it is one of the most popular modes of payments used by consumers nowadays. However, when the control for spending spirals down, consumers begin to see their cards as their nightmare.

Most recent statistics show an average household in the United States carries around $7,200 in credit card debt. Being unable to manage credit cards is the reason why many consumers become indebted.

Unfortunately, statistics also reveal that the figure continues to increase every year despite the fact that household incomes are struggling to keep up with inflation.

In 2001, Drazen Prelec and Duncan Simester conducted a study titled “Always Leave Home Without It.” It was found that credit card users are more likely to spend twice as much for the same exact item.

The researchers suggest that using a credit card instead of cash usually clouds the judgment of consumers and makes them spend more than they intend to. This is especially true to items such as tickets.

There are several ways to use credit cards wisely and avoid debt. Consumers should pay their bill in full every month and buy only what they can afford. This can be quite challenging, especially to impulsive buyers. However, this is one of the rules in using credit cards.

Consumers should also remember that 35 percent of their credit card is based on their payment history. Thus, missing a payment can negatively affect their credit score.

It is similarly important to use the credit card according to one’s budget. Consumers may create a written budget and work through their predetermined spending limits.

Consumers may even ask their credit card company to reduce their credit limit. This can help them manage their finances well on a monthly basis. They may also have a self-imposed limit for the use of their cards.

Keeping track of their financial statement is an important credit card management technique. This allows consumers to see all the purchases they made every month. They may log in to their accounts and see how much they spent or how much is left.

For security purposes, monitoring credit card transactions is also essential to check unauthorized and suspicious activities.

Consumers may also use the RFID blocking sleeves to protect their credit cards from criminals. In addition to avoiding debt, it is also important to keep the credit cards safe.

The RFID blocking sleeves are available for purchase at amazon.com (http://www.amazon.com/rfid-sleeves-for-credit-cards/dp/B0150T0AI2).