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How much do you owe? How Credit Card Debt Has Changed In 2020 Personal finance

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The year 2020 has changed the lives of families around the world. Amid major adjustments like working from home, virtual education, and new healthcare precautions, there was another area where Americans experienced change. The Covid-19 pandemic has changed consumer credit card habits nationwide.

In a year in which millions of people have been left homebound and unemployment rates hit record highs, credit card debt has taken an unexpected turn on the downside. According to Experian, consumers reduced their credit card debt by an impressive 14% in 2020.

Read on to find out how your credit card management habits stack up against those of others. You’ll also find tips on how to reduce your credit card debt and tools you can use if your debt consolidation seems overwhelming right now.

Average debt of credit card holders

In an ideal world, consumers would pay off their credit card balance in full each month. When you pay off your statement balance on the due date, you can enjoy all the benefits of your credit card without the added cost of high interest charges.

Unfortunately, many Americans do not follow this sound financial rule. Experian reported that 75% of credit card holders have a balance on their accounts. As a result, the average amount of consumer credit card debt in 2020 was $ 5,315.

While this figure is still high, average credit card debt is down in 2020 compared to the previous year. In 2019, the average credit card debt was $ 6,194.

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