Average household credit card debt currently stands at over $7,000. Among indebted households, the average rises to more than $15,000. The good news is that credit card debt is down from 2010, but evidence suggests that this is due to defaults rather than repayment.
One might hope that declining debt would lead to an increase in saving, but that trend has yet to emerge. The debt-service ratio, a comparison of payments on mortgage and consumer debt to personal income, has leveled off and even begun to decline in recent years. Despite this, personal saving continues to drop off.
This should be the year Americans make an effort to turn their finances around.
– John Gower is a Senior Analyst for NerdWallet, a website dedicated to helping consumers learn more about their personal finances.