Final answer:
In 2010, Americans had approximately $900 billion in unpaid credit card debts. The debts continued to rise due to interest rates between 12% to 18%, reaching about $943 billion by May 2016. Many American families carry these credit card balances, incurring billions in interest each year.
Step-by-step explanation:
In 2010, Americans had about $900 billion outstanding in credit card debts not paid on time. The use of credit cards allows consumers to borrow money and pay back the borrowed amount plus interest. However, when these debts are not repaid on time, the outstanding amount can accumulate, leading to higher debts due to the average annual interest rates, which often range from 12% to 18% per year. By May 2016, the outstanding credit card debt had risen to approximately $943 billion, underlining the significant financial burdens such credit can entail for consumers.
Furthermore, a large percentage of American families often do not pay off their credit card balances in full. According to data, about half always pay the full balance on time, a quarter hardly ever do, and in 2014, 56% of consumers carried an unpaid balance over the past 12 months, potentially leading to paying tens of billions of dollars annually in interest and other fees associated with credit cards.