Why Are You Spending More on Your Bank Account Than Your Family?
- by admin
By now, you’re probably thinking that the average household spends an average of $7,000 on credit card debt each year.
While the figure is not necessarily out of line with other households, the amount spent on credit cards is higher than the average spend by the general population.
However, this is only an average, and the average credit card spending can be even higher than you think.
Credit cards can actually be a very effective financial tool if used correctly.
According to data compiled by credit card processor Experian, the average American spends $4,000 per year on credit and debit cards, and over half of that spend is on credit.
Credit card interest rates are also very competitive, ranging from 2.5% to 6.5%.
That makes it a good option for consumers who want to make their monthly payments as low as possible.
However, when it comes to the average spending on credit, it can be a bit of a pain.
According a new report by the Consumer Financial Protection Bureau (CFPB), the average consumer spent $6,838 on credit last year, an increase of $6.7 billion.
This means that the median household spent $739.24, a 4.2% increase from last year.
In contrast, the median American household spent only $534.23, a 2.3% decrease from last years spending.
It is worth noting that the CFPB also reported that the percentage of credit card accounts with less than $1,000 in balances is down from last fall.
The report found that while the average U.S. consumer spent less than the federal poverty level in 2012, the federal government does provide some financial aid to low-income Americans.
The average credit limit for households earning less than about $15,000 was $600.
If you’re looking for more help with your credit, the Consumer Finance Protection Bureau has a good tool to help you make payments on your credit card: How to Find the Right Credit Card for You.
However if you’re planning to use your credit to pay off your debt, then it’s time to reconsider how you spend your money.
According the Consumer Bankers Association, the most common ways that consumers spend money are for personal or household purposes, such as paying bills, buying gift cards, or using prepaid cards.
However spending for personal use is the least popular way to spend money, with the average amount spent being $9,569 per person.
Spending for household purposes is the next most popular way, with $8,814 spent per household per year.
The next most common type of spending is shopping, with spending $717 per person on credit purchases each year on average.
While the average income for households is still below the poverty level, it is a good indicator of how well Americans are doing financially.
According data from the Census Bureau, the percentage living in poverty decreased from 12.7% in 2008 to 10.9% in 2015.
It means that, while the poverty rate is still high, the number of Americans living in the bottom 10% of the income distribution is lower than it has been in decades.
That’s great news for consumers and families who can now save money to get ahead.
By now, you’re probably thinking that the average household spends an average of $7,000 on credit card debt each year.While…