One correction. You quote the "Nearly $8,000 in credit card debt" figure. However, this figure is based on the ending statement balance at the end of the month that the credit card companies report to credit bueraues. I, as someone who uses credit cards but always pays them off, have whatever I spend every month as this figure, despite never having any "debt" that I didn't pay off before being charged interest on. So I think this is an extremely misleading figure to use.
I certainly get that and appreciate the comment. According to Nerd Wallet's actual report, however, they specify the difference between "revolving" credit card debt (that which is carried from month to month) and "transacting" credit card debt (the amount paid off every month). They have amounts for both, understandably transacting is much higher at about $18K which includes revolving debt. Then the revolving credit card balance is listed at a little over $7800. So ultimately, I disagree that this is misleading unless the information that Nerd Wallet is communicating is not correct. But regardless, I still appreciate the comment, the perspective, and the heads up that this can be misunderstood if not properly communicated!
Just to add to your comment Caleb. Various sources like Yahoo Finance, Nerd Wallet, and JD power have articles stating that Americans who pay off monthly and Americans who don’t is about 50/50. 50% of Americans carry debt on credit cards and are accruing interest. Pretty crazy that many people carry a balance of any size!
One correction. You quote the "Nearly $8,000 in credit card debt" figure. However, this figure is based on the ending statement balance at the end of the month that the credit card companies report to credit bueraues. I, as someone who uses credit cards but always pays them off, have whatever I spend every month as this figure, despite never having any "debt" that I didn't pay off before being charged interest on. So I think this is an extremely misleading figure to use.
I certainly get that and appreciate the comment. According to Nerd Wallet's actual report, however, they specify the difference between "revolving" credit card debt (that which is carried from month to month) and "transacting" credit card debt (the amount paid off every month). They have amounts for both, understandably transacting is much higher at about $18K which includes revolving debt. Then the revolving credit card balance is listed at a little over $7800. So ultimately, I disagree that this is misleading unless the information that Nerd Wallet is communicating is not correct. But regardless, I still appreciate the comment, the perspective, and the heads up that this can be misunderstood if not properly communicated!
Just to add to your comment Caleb. Various sources like Yahoo Finance, Nerd Wallet, and JD power have articles stating that Americans who pay off monthly and Americans who don’t is about 50/50. 50% of Americans carry debt on credit cards and are accruing interest. Pretty crazy that many people carry a balance of any size!
Thanks for the extra input! Yeah that's insane.