Money Saving Monday: Spokane households average $12,000 in credit card debt

SPOKANE, Wash. — Spokane residents are grappling with significant credit card debt as Americans collectively carry $1.2 trillion in unpaid balances.

The average Spokane household owes around $12,000 in credit card debt, according to Numerica Credit Union data.

Financial experts say addressing debt starts with changing spending habits and eliminating reliance on credit cards.

“It’s kind of like holding up a mirror to our finances. So lay out on paper everything that you owe. How many cards is it? What are the balances? What are the interest rates? And then, we come up with a strategy to begin to pay those down,” said Jon Maroni, Numerica financial engagement manager.

Maroni recommends balance transfers or consolidation loans as effective debt management tools.

“If somebody takes out a consolidation loan and it lowers the interest rate that they’re paying on credit card balances, they pay them off, and they’ve got one payment. It’s a great situation to be in,” Maroni said.

However, consolidation only works if consumers avoid accumulating new debt on their old credit cards.

“It’s kind of like turning a massive boat. We need to begin to turn it. And the way that we turn it is beginning to save up cash, instead of leaning on debt,” he said.

For those who pay off cards through consolidation, Maroni advocates eliminating temptation entirely.

“If I took out a consolidation loan to pay one down or pay it off, I need to shred that card. I need to get rid of it. Kind of delete it from my memory,” he said.

Consumers struggling with debt should seek professional help. Most banks and credit unions offer debt management plans and free credit counseling services.