PF W12 – American Credit Card Debt

In the past week I went over lots of bank-related topics, and one of the major topics was American Credit Card debt and I must now compare it with other types of debt like mortgage, and then there’s a way at the bottom to pay off more than one debt at the same time.

First, because of the reasons stated in my Week 10 essay, a mortgage loan has a substantially lower rate than a credit card even with an “excellent” credit rate, by about a third or at maximum a quarter.  The credit rates I found were from 12.99 to 25.99 (, credit comparison. note all 0% intro APR Because I couldn’t figure out anything else), while the mortgage was from 3.668 to 4.375 according to (mortgage) as of September 21, 2017.  (It may be different depending on when you read this.)   The maximum rate I found for credit cards is about eight times the smallest mortgage rate. 

The credit cards’ benefits are just to get you to buy things with their card, not for the benefit of the buyer.  Then they don’t let cardholders know when they’re about to go over into debt and so the holder incurs debt from spending too much.  Then he/she is faced with a full-interest debt to pay off before it gets too large to pay.

Credit card debt has steadily risen to over $784 billion right now (according to, as of Sept. 2017.  It could be larger by the time you read this, but this is still tremendous, and all of that is owed to banks.

An interesting plan anybody can use for paying off debt is to “snowball” it, or pay the interest for each debt and the remainder on the smallest debt. Once the smallest debt is paid off completely, add the money from the first debt payment money to the next largest amount’s payment.  

Here’s an example of the plan:

snowball plan

See, it starts with the smallest one and then rolls the payment for that into the next largest one and then the next and so forth.


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