‘Staggering’: Average NC, SC households had $10K+ in credit card debt each month, recent study says

CHARLOTTE — A study out this month found families racking up more credit card debt each month.

WalletHub says the average North Carolina household owes $10,600, and that the average South Carolina one: $11,000.

“It is staggering,” WalletHub’s Chip Lupo, who happens to be based in the Carolinas, said. “It is as bad as it sounds.”

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He says main culprits include inflation and wages not keeping up.

“And when you factor in the average interest rate of about 22/23% and people are only paying the minimum, making the minimum monthly payment, you can find yourself in a tremendous amount of debt really quickly,” he said.

So what can you do about it?

Action 9 attorney Jason Stoogenke says:

Don’t be afraid to negotiate. See if your credit card company will give you a better rate.
If you have a major purchase coming up, you may want to open a new credit card, one offering 0% interest. Just make sure you read the fine print and still be sure to pay it off each month.
Consider consolidating your debt with—what’s called—a “balance transfer” credit card.

But Stoogenke has a few words of caution about the last option:

Usually, you need good credit to qualify for “balance transfer” credit cards.
Most of these cards charge a transfer fee.
The interest rate will go up after the promotional period.

At least two nonprofits that help consumers eliminate debt: GreenPath and Money Management International. Both charge about $30 each month, and the average client seems to wipe away debt in about two to three years.

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