A Perspective on Credit Card Debt That Should Motivate You to Overcome It

Current average APR for credit cards stands at 17.69% (with many exceeding 20%).

Assuming monthly compounding balances, the effective APR could rise nearly one percentage point – to approximately 18%.

What this essentially entails in practical terms is that every $1,000 of debt on your credit card balance accumulates an extra $180 annually through interest charges.

Continued on with our example, we would add $1000 (2X the original charged amount) of interest payments every 6.25 years on each $1,000 accrued.

If you find yourself with credit card debt, that should be alarming enough for you to stop in their tracks, sell their belongings, and work tirelessly until the balance is paid in full.

But for many it isn’t enough; the average credit card balance for Generation X stands at $5,343 while Gen Y stands at $2682.

There Is Such a Thing as Justifiable Credit Card Debt
Under certain circumstances, an individual may incur credit card debt that cannot be paid back within a reasonable time period that would be justified and excusable – situations may include:

Individuals in financial difficulty such as credit card debt or those without emergency funds who are out of work needing emergency support until they start earning regular income again may qualify for financial help through creditors, student loan consolidation programs or job trainee programs, especially if their course loads are too demanding to allow more paid work, or have taken on unpaid internships that do not pay well enough.
As a low wage earner with no savings and unanticipated expenses (medical, transportation or unexpected household repair), unexpected necessary expenses will arise, leaving you no choice but to pay off the mafia immediately or you risk having their horse head placed directly under your pillow tonight.
Exceptionally, credit card debt may be justified after all other options have been explored (selling off possessions, cutting expenses to only what’s essential, moving to cheaper location and tapping a lower interest home equity line of credit have all failed).

Everyone else, you will likely have difficulty convincing me that credit card balances are justified (but feel free to try anyway in the comments).

How To View Credit Card Debt, for the Masses
Looking at debt by multiplying its original charge amount every 6.25 years may be shocking and motivational, yet is that enough to create an overwhelming hatred for credit card debt and motivate immediate and long-term action? Perhaps not.