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Credit card debt influenced by age, income

On Behalf of | Feb 21, 2019 | Credit Card Debt, Firm News

Over two-thirds of American adults have at least one credit card, and the average balance is perhaps less than ideal. Adults of all ages and income brackets struggle with the burden created by their credit card debt. However, some people in Florida might have an easier time than others when it comes to addressing these debts.

The average consumer has not just one credit card, but three. While the average credit card debt for an individual is at about $5,331, those between the ages of 45 and 54 are struggling the most. Consumers in this age group carry an average of $9,096. For comparison, those over the age of 75 generally only have about $5,638 on their cards. While age plays a role in the average amount of credit card debt, experts say that income is also a factor.

Adults who fall in higher income brackets tend to carry higher credit card balances than those who earn less, but that does not mean they are worse off. The ratio of credit card debt to income is generally lower for higher earners because they have more access to disposable income. Those who earn less tend to have higher debt to income ratios, making their credit card balances much harder to deal with in the long run even if they owe significantly less.

Credit card debt is perhaps unsurprisingly common, which can give some people the false idea that they are alone in struggling to pay off their balances. Realistically, many Florida residents are unsure of how they will make their next payment and may be watching as interest rates cause those balances to grow. When repayment becomes impossible, some can benefit from pursuing personal bankruptcy, which can help discharge these types of debts.

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