Recent studies show that Americans now have more student loan debt than credit card debt. According to The Wall Street Journal, this may be because U.S. citizens are dedicated to escaping credit card debt.
June 2010 figures released by the Federal Reserve show that Americans owe $826.5 billion in revolving credit, which is primarily made up of credit card debt. Mark Kantrowitz, a financial analyst, estimates that U.S. citizens owe $829.79 billion in both federal and private education loans.
Revolving credit reached an all-time high of $975.7 billion in 2008. According to the news source, Americans who have both credit card and education debt are more likely to pay off their card before they complete their education loan payments.
"The growth in education debt outstanding is like cooking a lobster," Kantrowitz told the news source. "The increase in total student debt occurs slowly but steadily, so by the time you notice that the water is boiling, you're already cooked."
Paying off credit card debts quickly will free up more money to tackle student loans. According to MSNBC, those who want to pay off the amount they owe on a credit card should form a budget and stop using credit cards altogether.