According to a recent article by CNN, consumer credit card debt dropped in 2011 by 11%. With lingering high unemployment, the threat of a double dip, and stagnant wages, it seems a bit impressive to me that consumer credit card debt actually decreased as a whole.
According to the article:
“The average credit card balance for 2011 was $6,576, down from $7,404 the previous year”
$6,576 in credit card debt still seems like a substantial amount. If you’re earning $40,000 a year in Gross income that would be roughly three months of net pay, meaning you’re likely to be paying quite a bit in interest payments to carry the revolving debt.
Although the credit card companies may not be pleased by the reduction in debt, I’m glad to see that it’s headed in the right direction. Of course, it’s not even close to debt free, but the recession may be a blessing in the sense of teaching Americans to become more financially responsible. Perhaps I’m being too much of an optimist?
If you have credit card debt, has it dropped over the past year?