Why Are You Still in Credit Card Debt?

Why Are You Still in Credit Card Debt?

Why Are You Still in Credit Card Debt?

Do you have any credit card debt? Chances are if you own even one credit card the answer is yes. And if you’re like most people, then you probably have several cards with each one carrying at least some balance. In fact, more than 120 million Americans have at least some credit card debt, with the average amount per household coming in at $8,448. That number alone is staggering, but when you consider the amount of interest the average person is paying, the numbers are even more mind-blowing.

Fees Compound the Problem
Consider the fact that the interest rate for the average credit card is 14 percent, according to the Federal Reserve, which means the average family could easily spend more than $1,000 each year just on the interest alone. That is a huge portion of a person’s income going to waste. Everyone knows that debt is bad and that paying interest fees is essentially throwing away money. So why do so many people continue to get into so much credit card debt? And why do so few people seem to be able to get out from debt once they fall into that trap?

Create a Plan
In order to get out of debt, you have to live by a budget. A set budget will help you live within your means. You should also set a target date for when you want to become debt-free, and stick to it. It’s also a good idea to reward yourself as you reach certain milestones along the way to becoming debt-free. But don’t add further debt. Once you’ve created your plan you have to live by it. Millions of people start the process but they don’t achieve their goal. For many, it’s because they continue to make the same mistakes that keep them in debt.

Avoid These Common Mistakes
One of the most common mistakes people make is getting their budget wrong. The problem is many people consider and calculate their budget by looking forward instead of back. It’s important to learn from the past in order to understand how to manage your budget going forward. Another big mistake people commit is making decisions based on emotion instead of common sense. If you can’t afford your car payment then sell it and find something more affordable. It’s a no-brainer but it can be difficult for someone who is emotionally attached to his or her vehicle.

Automation Works
Another mistake people make is by passing automation. When you set your payments to be withdrawn automatically you won’t ever miss a payment. You’ll also likely avoid the temptation to spend the money you have set aside for your credit card bill, somewhere else. Lastly, don’t try to borrow your way out of debt without setting a budget and changing your spending habits. Balance transfers and consolidating debts can be effective tools for getting out of debt but if you haven’t corrected your spending habits first then you will most likely continue to spend beyond your means and end up in even worse debt.


We hope you found this article about “Why Are You Still in Credit Card Debt?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe to our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio



GROCO.com is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in
Lee Brower

Empowering Leaders of Family Businesses

Transcript: Alan Olsen Welcome to American Dreams. My guest today is Lee Brower. Lee, welcome to today’s show.   Lee Brower Alan, I’m delighted to be here. Thank you for having me.   Alan Olsen Oh, I’m excited for this session night ugly. I’ve sat in classes with you. Management Consulting techniques, strategic planning. And…

Redefining Social Responsibility In The Financial Industry: Our Conversation With David Reiling

See David’s Recent Interview with Alan Olsen: https://www.youtube.com/watch?v=ztdtPfH9RAk&t=2s David Reiling is an accomplished social entrepreneur and innovator in the field of community development finance and financial inclusion. He has been the Chief Executive Officer of Sunrise Banks since 1995, and since then, he has successfully transformed Sunrise Banks into a leading player in the industry,…

David Reiling

Banking As A Social Entrepreneur

Transcript: Alan Olsen Welcome to American Dreams. My guest this week is David Reiling. David, welcome to today’s show.   David Reiling Thanks, Alan. Great to be here.   Alan Olsen So David, you have a very unique background. You know, tell us a little bit about the, the picture your your background in, you…

The Economic Influence of the NBA All-Star Weekend

NBA All-Star Weekend Economic Influence

Written by Ryan Hickman   If you have walked around downtown Salt Lake City recently, you’d come across ginormous signs advertising the NBA. But not just advertisements for the local Utah Jazz, but for the annual pinnacle of NBA events: the 2023 All-Star Game. This annual event envelopes whichever city hosts the events, which include…