Many Americans—about half—carry credit card debt from month to month, and about 53 percent of them have been in debt for more than a year, according to a survey by Bankrate.com. Households with credit card debt owe an average of $10,562, according to personal finance website NerdWallet.
Not paying off balances racks up even more debt. The Federal Reserve reports that average interest rates on unpaid credit card balances is nearly 23 percent, which means those making minimum payments each month on a $10,000 balance won’t pay it off for 27 years, and the final amount paid would be $24,423.
Carrying a balance on a retailer-affiliated credit card can cost even more: Some store cards now charge 30 to 35 percent interest; making the…
