How much credit card debt is too much?
A few years ago, Mint asked people this question and published their results in an infographic (above). Almost half of the people who responded thought any credit card debt is too much. It’s not a surprising response: with the current average (i.e., not highest) credit card interest rate for someone with good credit at just over 17%, any amount of credit card debt can be expensive to pay off.
Thirteen percent thought anything over $5,000 was too much. At 17% interest and a 3% minimum monthly payment ($150/month), a $5,001 balance would take almost 4 years to pay off and a little over $1,800 would be paid in interest. Unfortunately, the average household credit card debt is more than $5,000 — $7,221 according to Nerdwallet. At a 17% interest rate, this could cost the cardholder almost $10,000 to repay.
So, what do you think? How much credit card debt is too much? Is it okay to carry a balance of a few hundred dollars? A thousand? Or is any credit card debt too much?