One-Third of Americans Have Overdraft, Nearly Half Carry Credit Card Debt

May 27, 2014
credit card news
U.S. spenders are trying to lower their debt burdens, but credit card debt continues to dog them. A study by MagnifyMoney shows that Americans have on average $15,191 in card debt and are lacking in financial literacy.

Additionally, 35 percent U.S. consumers have overdrawn their accounts this past year -- an average of 2.5 times. The most common reasons are forgetfulness and financial straits. The average fees for overdraft and Non Sufficient Funds are $225 annually. Americans also are lacking in savings.

With more than 75 percent of U.S. consumers paying 15 percent interest or higher, they could reduce their credit card debt through a balance transfer from one account into another. This allows a customer to enjoy a zero percent interest rate for a short period of time.

The April 2014 survey, which included 1,435 U.S. adults, also found that total consumer debt in the United States is approaching $17 trillion. That includes about $13.3 trillion in mortgage debt, $1.2 trillion in student loans, $860 billion in credit card debt, and $110 billion in auto loan debt.

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