Bad Credit Loan Information
Credit Card Debt Information
Average Credit Card Debt
Ask a foreigner to name 20 characteristics of America and he/she will be sure to say "free spending country." The average credit card debt in America couldn't speak more truthfully. To start, debt is a financial condition that plagues everyone from the craftsman to the creative director. The numbers for credit card debt in America are downright startling. Let's review the numbers.
American credit card debt is hitting an all-time high, with close to 2 million households applying for bankruptcy each year. With around 1.2 billion credit cards in circulation, these figures will only grow. What is the cause of average American credit card debt? Besides free spending habits, Americans are exposed to barrages of credit card marketing messages and solicitations. In addition, the dynamics of credit cards have also increased consumer credit card debt, with 24 percent of all purchases being made with them.
American credit card debt is being helped by lavish spending habits. Close to 50 percent of ll households spend more money each year than they earn. With the average interest rates hovering around 20% and the average balance on credit cards close to $9000, it is easy to see how consumer credit card debt is loading the pockets of major creditors. Credit card debt in America has even turned taboo. Close to half of us will refuse to tell people how much we owe out of embarrassment.
Thankfully, credit card debt in America has been slightly eased by regulations certain banks have made to increase minimum monthly payments on credit card balances. Typically, the minimum is around 2% of the balance. With new rules by Citibank and Bank of America, this will be increased to 4%. Regardless, this is a two-edged sword. Although it will reduce consumer credit card debt quicker, many may not afford to make this payment every month. Both banks will still go ahead and implement these rules.
American credit card debt is the most it's ever been. Do everything you can to avoid becoming a casualty of this growing trend.