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.”

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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 grew up with and maintains a love for learning. He graduated from the University of Wisconsin-Green Bay with a degree in Business Administration and worked in sports marketing for a number of years. After living in Texas, Colorado, Tennessee, and Minnesota, the call of education eventually brought Ryan back to his home state of Wisconsin where he was a Business and Marketing teacher for three years. In his free time he likes to spend time with his wife and daughter, play basketball, read, and go fishing. Now with NGPF, Ryan is excited to help teachers lead the most important course their students will ever take.