Credit card debt has continued to grow and affect people throughout the years, but 2021 saw Americans living with close to $900 billion in credit card debt.
It’s expected that Americans will add another $60 billion to that total by the end of 2021, which shows that some people are comfortable taking out more debt or that people are relying on their credit cards due to a slumped economy.
The good news in Tennessee is that Tennessee is not one of the top 10 states for credit card debt. The top 10, as determined by WalletHub, include:
- The District of Columbia
- North Dakota
Tennessee may not be in the top 10, but it did make the top 20. Sitting at number 18, Tennessee residents have a median credit card debt of $2,124. WalletHub found that if those with an average debt paid $177 monthly, it would take them 12 months and 4 days to pay off their debts.
2021 had less debt than 2020
2021 did see a good spend-down period, as many people received stimulus checks that allowed them to pay down their credit card debts. That helped for the year, but it’s expected that the use of credit cards will increase and add another $60 billion by the end of 2021.
Credit card debt is hard to eliminate
Credit card debt is often hard to eliminate due to high interest rates and penalties for missing payments. According to a report from Jan. 10, 2022, around 40% of Americans with credit card debt don’t know their interest rates. That’s not good, because not knowing the interest rates means that Americans may not know when transferring to a personal loan or other repayment option is right for them.
If you’re dealing with credit card debt, get to know your interest rates. You may want to transfer your balance to a zero-interest card. If you are struggling to pay what you owe, you may want to opt for bankruptcy to help you get out of debt.