How does yours compare?
- Credit card debt can lead to high interest charges, which can get in the way of financial goals.
- Too much credit card debt can also lead to a lower credit score.
- On average, the average person in their 30s has a credit card balance of $6,568.
As a general rule, it’s best to keep your credit card debt to a minimum, or even avoid this type of debt altogether. Credit cards are notorious for charging high interest. And the more money you spend on interest, the less you’ll have to spend on important goals and other bills.
Plus, having a high credit card balance can actually hurt your credit score. And if your score isn’t great, you might have a hard time borrowing money — or borrowing affordably — when you need it.
During your 20s, you might end up with a little credit card debt. This is because you may be in a situation where your bills are high and you don’t have enough work experience to demand a high enough salary to keep up. But by the time you hit your 30s, you should really try to lower your balance.
Meanwhile, if you have a credit card balance in your 30s, you might be curious how your level of debt compares to people your age. And you might be surprised to learn that the average credit card balance for 30-somethings isn’t small.
How much do 30-somethings owe on their credit cards?
Average credit card balance among 30-somethings is $6,568, reports Personal capital. On a positive note, this is actually less than the average 40, 50 and 60 year old owes. But still, $6,568 is not a negligible amount, so if you have a comparable balance, it’s important to try to reduce it as quickly as possible.
Options for Paying Off Credit Card Debt
The sooner you can get rid of your credit card debt, the better. So whether your balance is comparable to that of a typical 30-something, higher or lower, it’s important to develop a compensation plan.
To that end, you might want to consider a balance transfer, which allows you to transfer your various balances to a single credit card that ideally will come with a lower interest rate. You might even be able to qualify for a 0% introductory rate on your balance transfer. But if you decide to go that route, commit to taking advantage of that lower interest rate (or 0% rate) by paying off your debt, and not add to your balance unless you have absolutely no choice.
Another option is to consolidate your credit card balances into a personal loan, then pay off that single loan as soon as you can. The advantage is that personal loans generally have lower interest rates than credit cards. They also offer fixed interest rates, so you won’t have to worry about your rate going up while you’re paying off your debt.
Clear that debt as soon as you can
If you’re in your 30s and have credit card debt, you’re in good company. But you should also do your best to get rid of this debt as soon as possible. As you get older, you’re likely to want to start focusing on other goals, like saving for retirement, so the less money you waste on credit card interest, the better.
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