Credit Card Debt Statistics
Keywords: credit card debt
Do you have any idea just how common credit cards are? Let’s take a look at a few statistics from the USA.
The average family carries a balance of between $5,000 and $8,000 on all their credit cards, depending on which figures you believe. Over $1,000 per family goes on interest every year. And that’s just the average - some people owe much more! Overall, Americans spend over $1 trillion every year on their credit cards, and owe more than $500 billion of it.
If debt continues at the current rate, then one family in a hundred will be forced into bankruptcy. Over 90% of Americans’ disposable incomes are spent paying back debts. Whatever happened to saving?
Debt Costs Everyone Money.
Literally billions of dollars are being used up on expenses that are only created because of the existence of the credit card industry. The weight of the calculations, administration and marketing needed to support the industry is immense - the average American gets at least one credit card offer in the mail every day.
That’s before you take into account the burden bankruptcies put on the court system, and the cost to the government of providing subsidized debt counseling. You might also note that consumers with more debt have less to spend - and when money isn’t flowing, it hurts the economy. There are very few industries or people that aren’t hurt by debt, at least in the long run.
Debt is Much More Common Than It Used To Be.
It’s not so long ago that being in even a little debt was considered to be absolutely terrible. When you wanted something, you saved up for it, and bought it once you had enough money. If you had bad credit, you couldn’t get a credit card at all. Go back fifty years and consumer debt figures were absurdly low, the same way they are today in most of the non-Western world.
In the West, though, the art of saving seems to be a lost one - almost no-one is saving enough for their retirement, and banks are having to offer ever-higher interest rates to get people to put money anywhere near a savings account. We have an ‘I-want-it-now’ consumer culture, and we’re willing to pay more than we can afford to fund our lifestyles.
Spending Isn’t To Blame.
Now that I’ve said that, don’t think that the reason you’re in debt is that you haven’t spent your money cautiously enough. According to statistics, it is very rare for people to get into debt because they spend their money frivolously. Far more people get buried in debt because they lose their job, or get sick - they take out credit cards to pay for basic expenses, and fall into the interest trap. Their debt spirals out of control from just a few thousand dollars borrowed to pay for essentials.
Most people have a reasonable sense of what they can afford, and won’t go out and use credit cards to buy things that they wouldn’t usually be able to pay for. The problem is simply a matter of people leaving their balances on credit cards for too long, not realizing just how high the interest really is.
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida. For counseling and help with credit card debt go to www.monsterdebtrelief.com
Previous Articles Highlighter:
Things To Look For In A Dive Watch (1)
Hopefully this brief overview can get you started on your quest for a great dive watch. Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida.
How To Build Your Own Sports Car (2)
After all, the process must certainly appear exciting to any would-be mechanic who loves to tinker with a car. Replicars allow one to actually build your sports car from the ground up using kit body and other parts, usually along with a commonly available mainstream automotive base.
A Look At Computerized Home Security (3)
The automation system will do such activities as turning your lights and TV on and off at preset times. This will create an illusion that you are at home and will prevent the possible theft attempts.
A Look At Adwords And Premium Advertising On Google (4)
These are part of Google's Adwords and Premium Advertising programs. Advertising like this can certainly be an important part of your marketing plan. Well developed ads with clever wording can prompt an immediate response from the reader to visit your site.
Are You Cuckoo For Cuckoo Clocks? (5)
Cuckoo clocks can be a great conversation piece and quality clocks are sought out as collector's items. Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son.
How To Make The Right Offer On The Car You Want (6)
You can be firm without being a jerk; you just want to be in control. The control starts the moment you arrive at the dealer, if you are approached tell them you want to look by yourself and you will come get them when you have found something you like.
How To Check Vehicles For Safety Before You Buy (7)
Antilock brakes have been around awhile and are a proven safety device, which is why insurance companies give you a discount if your vehicle has them It is highly recommended that you not buy a vehicle without them.
Why To Buy A Used Car Instead Of New (8)
Pop the trunk and make sure that there is a spare and that it is in good condition as well. Watch out for serious damage and paint work. It is easy to spot with a close eye.
The Credit Rebuilding Car Sales Scam (9)
That's right I said prey upon. If you see slogans like "Credit Doctor" or "We Finance Anyone" run away! Well, at least be careful. Dealerships have learned over time that people who know they have credit problems will not argue or haggle as much as someone who does not have credit problems.
How To Get More For Your Car On EBay Motors (10)
One little trick I have used that I haven't seen many do is to also take the dipstick out and take a close up of the oil to show that is fresh and clean.
Newer Articles Highlighter:
The Early History Of Batteries (1)
The electrolyte mixture used was potassium hydroxide which is the same used in nickel cadmium and alkaline batteries today. These batteries did well and lasted through being overcharged as well as remaining uncharged for extended periods of time.
How To Save Money On Gasoline (2)
Accelerate normally and don't ride bumpers. Keep your car tuned up and running properly. A vehicle that is misfiring and not in optimal running condition will burn way more fuel.
What Is The Raise And The Lowball In The Car Business? (3)
Then when you return to the original dealer they tell you they sold that car or we had someone that we could have sold your trade in to but they bought something else.
What Is Up With Speeding Tickets? (4)
Just got to the search engine you like and input "traffic school" in the search bar. Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son.
Are Hybrid Cars Hazardous? (5)
Let's take a closer look at potential hybrid hazards. One of the biggest concerns often talked about when it comes to hybrid vehicles has to do with those personnel responding to accidents involving a hybrid.
Tips On Buying A Used Car (6)
You may have capital in your home that can be used at a much cheaper rate than an auto loan would be. Use the equity that you have in your home by taking out a home equity loan.
How To Choose A Bluetooth Headset (7)
3.Compatability is also important, as well as the warranty period. 4.Check the sound quality for both sending and receiving audio. 5.What type of range does the headset offer you?
Some Negatives About Hybrid Cars (8)
There has to be less hard breaking and careful attention to pressure on the gas pedal to get the most out of one's hybrid. Complaints of hybrids performing badly in certain weather conditions have also changed some owners' opinions about their environmentally friendly vehicle.
Popular Shoes For Summer Of 2006 (9)
As far as the traditional thong sandal or flip flop, these are as popular as ever and are being worn not only on the beach but with virtually everything else from shorts to jeans when going out to dinner and a movie or a night on the town.
Watch Out For Big Trucks (10)
Big trucks are a necessity in our society and will not being going away any time soon. We have to be extra careful when sharing the highway with these vehicles because as stated in many cases they cannot see us.