US Credit Card Debt Closed Last Year at an All-Time High
America, we need to talk.
We got news that US credit card debt closed in 2018 at an all-time high — $870 billion, to be exact. I'm sorry, what?! It's time for a little tough love.
While we're always here to tell you which credit card — or cards — to get, we've also said this time and time again: Don't get a credit card if you cannot afford to pay your bills, on time, in full, every single month.
A credit card is not a magical piece of plastic (or metal) that gives you unlimited funds or monopoly money (as much as we wish that were true). It's a savvy way to rack up points and miles for travel, but you should never get a credit card and buy things that you normally wouldn't have, just for the sake of "getting the points."
Even if you're (gasp) not using a credit card to rack up points and miles, the same thing holds true: Don't spend money on your credit card that you don't have. Creditcards.com Managing Editor Brady Porche also wants to remind you, "If you're a credit card user and you want to avoid getting into debt, it's critical to create a budget and stick to it. Avoid spending more with your card than you can pay off each month. Better yet, pay your balance down to zero each week if your budget allows it."
While we're on the subject, now seems like a good time to reiterate our 10 commandments for travel credit cards.
- Pay your balance in full
- Do not miss a payment
- Don't cancel a card before you have opened a new one
- Don't cancel a card and lose your points and miles
- Don't allow your rewards to expire
- Don't miss out on a sign-up bonus
- Take advantage of category bonuses
- Don't ignore cards with annual fees
- Pursue retention bonuses
- Don't pay foreign transaction fees
The bottom line? Don't spend what you don't have, and pay your bills in full every single month. Now let's lower that number for 2019, shall we?
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 5X miles | Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel |
| 2X miles | Earn unlimited 2X miles on every purchase, every day |
Pros
- Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
- You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
- Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners
Cons
- Highest bonus-earning categories only on travel booked via Capital One Travel
- LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
- Earn unlimited 2X miles on every purchase, every day
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Miles won't expire for the life of the account and there's no limit to how many you can earn
- Receive up to a $120 credit for Global Entry or TSA PreCheck®
- Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
- Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
- Transfer your miles to your choice of 15+ travel loyalty programs
- Top rated mobile app