Average consumer now carries $6,329 in credit card debt. 'People are stretched,' expert says

Average consumer now carries $6,329 in credit card debt. 'People are stretched,' expert says  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, AUG 14, 2024 YOUR WEALTH Editor's Note Credit cards are a great financial tool when used carefully. To that point, not only can you build a positive credit history, but the right card allows you to earn rewards on your everyday spending and to get value from added benefits. So, with responsible use, credit cards can help you build your credit and a "good" to "great "credit score will get you more favorable terms, like lower interest rates, on money you borrow. Additionally, when you use a credit card you can enjoy protection against unauthorized charges and other benefits. The key here is "responsible use." On the flip side, the risk of using credit cards is that it makes it all too easy for people to overspend. Buying on credit can also make your purchases more expensive, considering the interest you may pay on them. Credit cards tend to charge high interest rates, which can drag you deeper and deeper in debt if you're not careful. Indeed, high interest rates on credit card balances are the biggest cause of ongoing credit card debt for consumers. And as consumers lean more and more on credit cards, more borrowers are falling behind on their payments. The only way to avoid credit card debt is to pay your balance in full each month on or before the statement due date. If you can't pay the full balance, some money experts suggest you can try to pay as much as possible to reduce the interest charge. You should also make sure to pay at least the minimum payment each month to avoid late fees and damage to your credit score. Sadly, many people use credit cards irresponsibly and end up in debt. However, contrary to popular belief, if you can use the plastic responsibly, you are actually much better off paying with a credit card than with a debit card and keeping cash transactions to a minimum. For more advice to help you make smart money decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Jim Pavia Senior Editor, Personal Finance @JIMPAVIA Average consumer now carries $6,329 in credit card debt. 'People are stretched,' expert says Americans are racking up credit card debt and increasingly falling behind on their payments, recent reports show. FAFSA rollout was 'a stunning failure,' college aid expert says. Here's how next year will compare While still resolving the challenges that have plagued this year's rollout, the Education Department said the launch of the 2025-26 FAFSA will also be delayed. 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