The Debt Mountain

Americans now owe just north of $1 trillion in credit card debt. The average credit card interest rate is 27.8%, while the average that people are paying on carried balances is 22.8%.

Americans owe about $12 trillion in mortgage debt. The average current mortgage rate (traditional mortgage) is 8%. The average APR across all mortgage debt is 5.7%.

22.8% vs 5.7%. Heck, even 22.8% vs 8%. 

I’ve been buried at the bottom of the mountain. I know what it feels like.

A few things go the wrong way or make a bad decision, and within a few short months, the credit card debt piles up. Once you’re buried, it’s a seemingly impossible mountain to climb.

Stress. Inadequate and unworthy. Less than.

I’m no f’nance bro, but I gotta think there’s a business opportunity for a credit card offering an APR much closer to the mortgage APR. Yeah, I get it — credit cards have legitimately higher expenses to manage, and they are providing credit at a higher risk to themselves, but there’s gotta be an opportunity to move 22.8% closer to 8%. 

It will take creativity, insight, grit, and someone who cares. Doesn’t it always start with someone who cares?

In the meantime, here’s a great service to consider if you find yourself buried at the bottom of the debt mountain.