Do you have a lot of credit card debt? If you do, then you are not alone because according to statistics, the average American owes between $1,000 and $10,000 dollars to their credit card companies.

Why do consumers get so deep into debt? The main reason that consumers get into debt is because they do not save for the items that they want anymore. If you want something then you can slide a little plastic credit card and make your purchase. However, that is not the end of the story because of finance charges and interest rates.

Every time that you make a purchase with your credit card you are charged interest because you are borrowing the money from your credit card company. One good example is if you buy a two hundred dollar stereo, and have a fifteen percent interest rate. You would be charged twenty five dollars in interest so then the purchase costs two hundred and twenty five dollars in the end. This can add up and if you only pay your minimum monthly payments then it will take a long time to pay off the charges from your stereo purchase.

Americans' Credit Card Debt:

> $931 Billion

The Average Balance per Open Credit Card:

> $1,157

The Average Credit Card Debt per Household:

> $8,329

It is interesting to note that in the the current climate of economic instability, that credit card debt usage has actually been on the decline since October 2008!

Last Updated: 5/18/09

How can you pay off your credit card debt? Paying off your credit card debt takes time but it can be done if you stay organized and motivated. You should get all of your credit card statements together and find out what your interest rates and finance charges are. You want to try to pay off the credit cards that have the highest interest rates first. You should start small and try to get your credit cards to where they have at least half of their credit lines available. This will help to improve your credit score while you are trying to pay off all of your credit card debt.

Another way to pay off your credit card debt faster is to double your minimum monthly payments if possible. You should also avoid making any new credit card purchases; you can cut up your credit cards and save one for emergencies. This will allow you to really think about the purchases that you make before charging them to your credit card.

What is the main thing that I need to think about before I make a credit card purchase? You need to separate your potential purchases into two categories: needs and wants. You should only purchase items that are necessities with your credit cards if you cannot pay for them in cash. Necessities include the following: rent, groceries, utilities, and monthly bills. If you want something and can hold off purchasing it then you should make these transactions in cash.

In order for Americans to carry less credit card debt they need to be more responsible about their spending. We need to be more vigilant about our personal finances so that we can save money while also boosting the economy at the same time.