Americans are loaded with credit card debt

Posted by Rex Dixon :: June 15, 2007 @ 3:45 am

Clearly, we're not the only ones talking about Americans' excessive credit card debt. See this report from CNN Money, which offers a list of money management tips. One troubling factoid grabbed our attention.

The average American household with at least one credit card has nearly $9,200 in credit card debt, according to CardWeb.com, and the average interest rate runs in the mid- to high teens at any given time.

More alarming is the fact that many people only make the minimum payments each month, which means they could be paying off their credit cards over a period of decades. We addressed this issue in a previous post when we discussed a recent GAO study.

A key benefit we offer borrowers is consistency. All payments are the same amount each month because Lending Club loans are installment loans. There are no variable finance charges each month.

When you have equal payments throughout the loan period, you can be more financially responsible. And when you manage your finances more efficiently, you will be improving your credit rating with every on-time payment you make!