Average Credit Card Bill Of The Common Man

If you knew that the average credit card bill for Americans amounts to $8,329, you could not be blamed for thinking the economy will collapse this week.

It’s not really that alarming but the knowledge should be enough to make all U.S. citizens start to balance their budgets. A balanced budget free of large debts is key to financial independence and peace of mind.

In the middle of the year 2008 credit-card debt in the United States was at $962 billion, directly related to the $8,000 plus average credit card bill. That number could easily be over $1 billion by July 2009. Statistics tells us that more than 40% of all American families spend more than their earnings. This is one of the major reasons why the number of people who filed for bankruptcy has risen by 50% in the last 10 years.

It could be tedious, but you will be doing something for your own benefit. If you settle all your bills, you will be living a life of financial independence. The average credit card bill is a matter not to be trifled with. It might not seem that urgent at the start when you look at your monthly bill and know you can pay it off. But if you don’t pay it promptly and leave it off for next month, that’s when your problems start. A little debt left unpaid could turn into several little debts mounting up into a large one.

They don’t really teach you how to balance a budget in school. You are taught to spend wisely and save, but there is no Budget 101 worth 3 units in college. Balancing your budget, which incorporates taking care of your average credit card bill, requires some patience and commitment. No one will grade your efforts (unless you consider your credit-card score as a grading system) but the outcome will be something worth your while.

You will need some basic tools to balance your budget and put your financial accounts in order. Organization is key. For this, you will have to get yourself an accordion folder that has about 10 slots in it. A filing cabinet would be great too. With some pencils and pens, you will be ready to label your accordion folder or filing cabinet.

What you will be putting down on paper will be all your expenses going back at least two months. This will involve credit-card payments, food, gas and water bills, and everything else you paid for in cash or credit. Adding all your expenses and deducting that from your earning from the same period will give you your balance. The point is never to spend more than your income.

If you basically pay for almost everything with your credit card, it will be easier to see where everything is going. Your average credit card bill should be in the middle of your budgeting efforts. If you don’t violate the basic rule of spending within your means, not only will budgeting be easy, you can sleep at night knowing you don’t owe anyone any money.


Source: Credit Cards For People With Bad Credit Rating

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