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Credit cards have become a liability and it is difficult to survive without one in today’s world. Everyone tries to minimize the debt, but it is difficult and if you are having less income as then you have to use credit cards for paying all your bills and get under debt.

Average Credit Debt of America?

We collected some statistics from government datasheets and banks and came to know that everyone from the United States owe $7,115 to the credit card companies. You might be thinking that this amount is easily payable if you are having sufficient time, but suppose that this is not the amount and expect some other figure. The amount of credit balance is same for the last 3-4 years and it is not lowered but only increasing at a rapid scale. If one focuses on the average debt in America it is close to $15,252. In the year 2009, marked had crashed and crises were all over the market. The average debt which was seen in that year was around $19,000.

What Happened?

The drop was straight away from $19,000 to $15,252 and the major reason behind this was that banks wrote massive amount of debts and they know that those amounts were non collectible under any circumstances. Still being under huge debts, people are still using credit cards for making purchases and getting more and more under debt.

The Debt Snowball

One can take help of the debt snowball for driving down the debt rate and not overwhelming in the entire process. Make a small purchase and try to deposit as much as money you can and make sure that you maintain the minimum payments. Once you see that you have maintained the small debt, repeat the process but this time try on a bigger debt. This will help you in organizing and will help in increasing your confidence.

Use Cash card and not credit cards

It is not a compulsion to use your credit cards all the time, try paying for your bills with cash cards or cash. Only use credit cards in hour of need as it will help in reducing your debt.

You can also cut your expenses to a little extent wherever possible as it will help you in maintaining cash in your account and will prevent you from getting under debt as you can still live with it.