Most Americans have one thing in common: They’re dealing with thousands of dollars in credit card debt. The average amount of credit card debt for men is around $7,407. For women, that amount is $5,245.
The average amount of debt in the country is $5,315 per adult in 2021. In 2019, that amount was $6,194, which means that most individuals have reduced their debt by around 14% in that time.
While credit card debt has reduced throughout the country, there are several reasons for that (not all of them are good). A struggling economy and job losses may have contributed to the drop in debt, since people focused on reducing their debts instead of adding to them in that time.
Which states have the most credit card debt?
The states that have the highest average credit card debt include Maryland, New Jersey, Connecticut, Alaska and Virginia. Wisconsin is listed among the states with the lowest amount of credit card debt. In 2020, the average debt was $4,376, which is significantly below the national average.
Credit card debt is overwhelming, but there are ways to eliminate it
Credit card debt may be overwhelming, especially if your income suddenly changes or the debts grow beyond what you can afford. In those cases, there are steps that you can take to minimize those debts and to have them eliminated, too.
Bankruptcy is one option. There are two primary forms, Chapter 7 and Chapter 13, which may allow you to pay back what you owe through liquidating assets or repaying debt on a payment plan. Both of these will have an impact on your credit, which is something to consider.
Are there options other than bankruptcy for eliminating debt?
Other options for getting a handle on your debt may include reducing spending, increasing your income, selling items on your own to pay down debt, getting a consolidation loan or contacting your lenders to negotiate a settlement. Your attorney can talk to you about each one of these options to help you decide if one of them could help you get out of debt soon.