| 1 in 3 consumers fear they will max out a credit card | | |  | WED, FEB 12, 2020 | | | | I have some simple advice for all those Americans who are maxing out their credit cards: Stop the madness. Seriously, it's time to step up and show some financial self-contol folks.
OK, you have some choices to make before you fall into some serious debt. Either cut up the plastic and toss it away or put those credit cards in a strong box and have a friend hide the key. Since so many of you have shown very little will power, drastic times call for drastic measures.
To that point, a recent survey confirmed that 91 million people said they will max out their credit cards this year. Sadly, about 35% of cardholders are starting 2020 with more credit card debt than they had in the beginning of 2019.
Without careful attention, sinking into overwhelming debt appears to be remarkably easy for many Americans. You have heard it before, but it's worth repeating: Paying down debt is difficult because as the balance climbs, the interest compounds and payments increase. Here's the proof: U.S. households with revolving credit card debt owe nearly $7,000, on average, costing them roughly $1,100 a year in interest payments.
If you're not paying your balance in full, then a portion of each payment goes toward interest payments increasing the amount of time it takes to pay off your balance. Paying credit card balances in full each month allows you to avoid paying any interest at all.
Now, let's all get out there, start acting like adults and practice some smart, safe credit card spending.
For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow.
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