Credit card debt is an unsecured consumer debt, acquired through use of credit cards. When you buy something with a credit card, the credit card company pays the store for your purchase. You are then required to pay back the amount plus an interest to the company at the end of the month. However, if you fail to make your payment, interest and penalties accrue. Continuous default on your part can cause the company to start collection process.
The average household credit card debt in the US is $15,252. An average household owes nearly $7115 on plastic cards. The average mortgage debt stands at around $152,209. On the other hand, average household student loan debt is $32,986. If you calculate in total, then you'll find that consumer debt has increased by 1.6% from the previous year.
You can dig out of credit card debt in the following ways: