We all know we should pay off our credit cards, so why are we accumulating debt in record numbers?

Answer:

• Total U.S. credit card debt: Over $1 trillion
• Average debt per customer: $5,900

Questions:

• Why do you think it’s important for individuals and the economy as a whole to pay attention to credit card debt levels?
• What are some of the reasons people accumulate credit card debt?
• What are the consequences of carrying a high credit card balance? How can it affect a person's financial well-being?
• What steps can individuals take to avoid or reduce credit card debt?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (from CBS News):

"Credit card debt in the U.S. hit an expensive milestone this week. Nationwide, it surpassed one trillion dollars for the first time ever. That’s according to new data provided by the Federal Reserve Bank of New York. The average balance was just over $5,900 per customer in the second quarter of 2023.”

-------------

Here's a teacher (and student) favorite activity in the Managing Credit unit, Interactive: FICO Score Simulation, where students will have opportunity to see what factors impact a credit score. 

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.