A new study shows as a country, Americans have now racked up a trillion dollars’ worth of credit card debt.
And just how are we doing this? Economist Hank Lewis at Lone Star College says one factor is living beyond your means, but that is only one factor. Another is 'Keeping up with the Joneses.'
“Some of it is social media. Some of it is other pressure. Some of it is just people lowering debt, feeling good about it and wanting to celebrate with a big dinner at a steakhouse,” Lewis explained.
The pressure Lewis is talking about is that you are influenced by what you see your fiends posting on social media, and by what your kids say their friends have when they come home from school.
The average household has over eight thousand dollars in credit card debt. How long does it take to pay off?
“I know people who have gone through credit card counseling and it took them anywhere from three to five years to pay off. Some of them had over 50 thousand dollars’ worth of credit card debt,” Lewis said, adding that if you can give up some of the 'extras' you might be able to pay it off in three years.