Debt weighs heavily on theminds and walletsof people across the country.
Mortgages make up the majority of this debt.
HELOCs and auto loans take the second and third spots.
While credit card debt ranks in fourth place, it still majorly impacts consumers.
The typical American has swiped their way to $6,501 in credit card debt on average.
How did all these people get here and how do they get out?
Heard of These Credit Card Debt Tips?
But millions of Americans overlookthese easy tipsthat could help them manage credit card debt even more wisely.
Read moreto boost your credit knowledge and keep your credit score in check.
Defining Consumer Debt
Consumer debt is broken down into two main categories: revolving and installment debt.
Lets take a closer look at these categories, their definitions and examples of each.
Many people see this as how much you’ve got the option to spend.
However, its more like how much you could borrow within a certain period of time.
Then you pay it back.
This is especially true if your lender has higher interest rates.
Making the minimum payment sounds great, until the interest kicks in.
But if its all you’re free to do, its still better than paying nothing.
The installment includes part of the principal, or the original amount of money you borrowed, plus interest.
This significantly impacts your payments.
Fixed rates often are higher, but they dont change.
Variable rates are at the mercy of market conditions.
Can You Survive 10 Days of Budgeting?
If you should probably wrangle your budget, it may be time to consider a savings challenge.
A Word on Medical Debt
Wondering wheremedical debtfalls among what is considered consumer debt?
The answer is: It depends.
If your medical debt has an assigned payment, then its installment debt.
Otherwise, it doesnt fall into either category.
Yes, thats a trillion with a T.
Why do so many Americans go into debt?
Discover how a credit counselor can assist you inreducing your consumer debt.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
