Consumers are starting to mirror pre-recession habits when it comes to credit card debt.
A report from CardHub.com has found that consumers are starting to mirror pre-recession habits when it comes to credit card debt. And as you can probably guess, that's not a good thing. If this trend keeps up, America's total credit card debt could reach $900 billion by the end of the year.
Ironically enough, consumers started off 2015 on the right footing. According to CardHub.com, during the first quarter of the year, consumers paid down roughly $35 billion in debt. However, if the first quarter was a bang, the second quarter was a whimper. From April to June, consumers racked up $32 billion in new credit card debt, the largest second quarter increase since 2009. And if Americans don't curb spending and start paying down debt by the end of the year, the average household is projected to carry $7,813 in debt. That would be the highest average household debt since 2008.
The good news is there are ways to right the ship. Make sure you're sticking to a budget, because it's impossible to dig yourself out of debt without knowing exactly where your money is going. As for your cards, pay off the card with the highest interest rate first, while making minimum payments on the rest. Once you pay off the card with the biggest balance, shift your attention to the next biggest, and repeat.
Article written by Chris O'Shea for SavvyMoney.