5 Debt Statistics That May Shock You
Maybe this will be my crusade. I’m passionate about debt management for one reason: I, along with many others, believe that much like a cancer in the body, consumer and corporate debt has the potential to bring the nation to its economic knees. I believe that if we don’t get it under control, debt may send many of us back to the food lines creating pictures reminiscent of the Great Depression. Do I sound like an alarmist? I hope so.
Close your eyes and allow yourself to think through the people in your world. All of them including the ones you don’t particularly like. Think about how they live relative to the job they have. Think about close friends and family that you know for a fact are living beyond their means. Watch financial self help shows like Suze Orman who talk to people who have more credit card debt than their house is worth. I will admit that some of these judgments of other people are not fair but statistics show them to be true. Here are the top five debt statistics that may shock you:
Today’s consumer has an average of 13 debt obligations on their credit report
The total amount of debt owed by Americans is more than 2.5 trillion. $8,500 per person on average.
38% of the 2.5 trillion comes from credit card debt
The average amount of credit card debt per card holder is $12,500 according to the Federal Reserve
74.9% of families had credit cards and 58% of those carry a balance.
Finally, talk to the forward thinking economists and some will tell you that they believe that although we are in a housing credit crisis right now, the next crisis, and it may be even bigger, may be the credit card crisis. The same thing happened where we have given credit cards to anybody and everybody who wants one and many of these don’t have the ability to pay it back.
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An interesting read – some good tips here
I think the problem is that many people live to far outside their means. You can’t get rich by living rich.
Debt management is the need of the hour and your post stresses on the same. This is an informative article and a very interesting read. These statistics are really shocking. Thanks for sharing this amazing article.
Hm, one of the best options is to have a low interest rate credit card, or a zero interest credit card, depending on what you get. And then just hop from credit card to credit card before the free trial period is over and you’re all set
.-= Joannah@low interest rate credit card´s last blog ..Best Credit Card Rewards =-.
America better wake up to this alarming trend before it is too late. You asked if you sound like an alarmist? Yep, as you should.
I have made it my mission in life to help people see the light about debt in general. We paid off $26,000 in 18 months, and we did it while many others claimed it impossible. Impossible is swimming through life and not realizing that a shark is on your tail. People better have a better look around them before the get devoured.
Great article!
.-= Brad from Enemy of Debt´s last blog ..The Day I Killed My Credit Card =-.
Very interesting read and definitely think that the statistics are shocking. I have a feeling though, that they are only going to get worse with the way that the economy is. People don’t have the money so they are resorting to credit cards and then they can’t pay off the credit cards. It’s sad that so many people have to go through this.
Nathan @ Debit Consolidation´s last [type] ..Will Debit Consolidation Affect My Credit Score