NerdWallet.com reports that our collective total debt is $11.74 trillion, up 5% from last year. the average debt for credit cards is $15,480, mortgage debt is $156,474. and student loans is $33,474 for Americans.
Experts say people make rookie mistakes when trying to rid themselves of debt. Here are some of the major no-nos: Taking out a pay day loan or title loan; transferring a balance to a new zero interest credit card, but failing to pay off the balance when the higher interest rates kick in; borrowing from a 401 (k) retirement account, especially if it involves paying a penalty. Putting creditors on a rotation, that is paying one creditor while making no payments on other debts is another bad idea. These methods seem to be a recipe for disaster. Debt settlement and bankruptcy should only be considered when you've run out of other options.
