Credit card debt facts and figures continue to be of major concern to economists and the public.
Today it seems that just about everyone is under some sort of consumer debt that is weighing them down. This is mostly unsecured debt that is incurred from indiscriminate use of 'plastic', which practically everybody carries in his or her wallet.
"If you think nobody cares if you're alive,
try missing a couple of car payments."
- Earl Wilson |
It is difficult to imagine at the time of purchase, the serious debt trap one falls into by the apparent ease and convenience of using a credit card.
The misinterpreted freedom of buying on credit seems to be overpowering to most American consumers. When you realize the destructive force of credit card debt on so many households, it's truly appalling. Instead, consumers should be focused on credit card debt eliminiation.
We find in our research, pouring over thousands of credit card debt facts and figures, that in order to take advantage of this compulsive behavior, credit card companies market to the public in such a way as to encourage people to spend far more than they can afford. The credit card industry's commercials are in fact designed to cater to the growth of a 'compulsive consumer economy'.
There are over 641 million credit cards circulating in the US, which account for one and a half trillion dollars in consumer spending. This fact alone confirms the US economy has gone plastic crazy.
Take a look at some additional credit cards debt facts and you find the message increasingly alarming. It is estimated that nearly twenty percent of the US citizens have 'maxed out' their credit cards limits, with twenty five percent of adults facing credit card debt problems. Available statistics for the year 2002 show $60 billion in personal redit card debt.
Out of approximately 185 million US consumers who have at least one credit card, 1.5 million declared bankruptcy in the year 2002. In the US, average interest rates on credit cards was a whopping 18.9 percent.
A typical credit card purchase, on an average, is around 112% higher than a similar purchase made when paying cash. With about forty percent of American families spending more than what they earn, the average debt burden per US household is estimated at $8400. An $8000 debt with an 18% interest rate eventually costs $24,000 and takes over 25 years to pay off. In 1995, American families were using 92% of their disposable incomes against payment of debts.
Based on the above credit card debt fact, it's obvious that in the United States, credit card debt is a major problem. Unfortunately, there is really no positive side to credit card use so it's time to consider credit card debt consolidation and counseling in order to pay off this debt now!
Personal finance issues are based three-fourths on behavior. An indisputable credit card debt fact is that such debts keep mounting because of irresponsible credit card. It is simply impossible to build wealth with credit cards.
Too often people feel victimized by the credit card companies, but blaming someone else for your own poor financial decisions well get you nowhere. As a knowledgeable and fully empowered consumer, you can beat the multi-billion dollar credit card industry at their own game. Just stop using their cards!
Change your financial life forever! Avoid debt at all costs. Cut down on expenses and start saving regularly. Free resources are available on our website to get you started, just take our free 10 Steps to Conquer Debt ecourse.
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"No man's credit is as good as his money."
- Edgar Watson Howe |
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Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
