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Credit Card Debt

Financial term in the General category

Definition

Money owed on credit cards that carries over from month to month, accruing interest. The average American household carries over $6,000 in credit card debt at 20%+ APR.

Related Terms

Minimum Payment

The smallest amount you must pay each month to keep the account in good standing, typically 1-3% of the balance or $25-35, whichever is greater. Paying only the minimum results in expensive long-term interest.

Frequently Asked Questions

What is Credit Card Debt?

Money owed on credit cards that carries over from month to month, accruing interest. The average American household carries over $6,000 in credit card debt at 20%+ APR.

Why is Credit Card Debt important in personal finance?

Credit Card Debt is an important general concept that helps individuals make better financial decisions. Understanding Credit Card Debt can improve your financial planning and help you achieve your money goals.

How does Credit Card Debt relate to Minimum Payment?

Credit Card Debt and Minimum Payment are related financial concepts. The smallest amount you must pay each month to keep the account in good standing, typically 1-3% of the balance or $25-35, whichever is greater. Paying only the minimum results in expensive long-term interest.

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