From the Federal Reserve survey of consumer finances: 38.1% of families held credit card debt in 2013

• Note: This survey is updated every three years with the 2016 results expected in September 2017)

Questions for students:

• What are the cons of carrying credit card debt?
• Given the high interest rates on credit card debt, why do you think consumers fall into debt with credit cards?
• Credit card companies often list a minimum payment due on their monthly statement. Do you think it is a good idea to make only that minimum payment?
• What are some strategies to help you avoid becoming one of the 38%?

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Here’s one of my favorite videos about credit card debt from our Video Library:

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.