United States credit card debt reached a new high at $1.02 trillion. Matt Shultz, the senior industry analyst at CreditCards.com summed up the need of paying down one’s debt: “Even if you feel your debt is manageable right now, know that you could be one unexpected emergency away from real trouble. Get that debt paid down while things are good so you can be better prepared if things turn for the worse.”
The percentage of American households carrying balances on their credit cards fell from 44 percent in 2010 to 34 percent in 2014.
But 6 in 10 millennials don’t pay off their credit card balances in full every month. Delinquencies and late payments are near historic lows, but they are rising.
It is fine to maximize credit card rewards, but make sure you’re paying off your balances to avoid high interest rates and fees.