Triple Debt Triple Threat - The Growing Debt on Credit Cards
Eric Jilson
Each year in the US the debt on credit cards continues to grow. It is the kind of growth which is creating tremendous problems as individuals and families face widening financial issues reaching beyond the credit card market alone. As consumers face growing credit card debt other markets like mortgages, cars, housing, higher education and other industries feel the effects of the debt.
As this debt grows more individuals are seeking the services of debt consolidation companies or taking other more drastic measure like foreclosures or bankruptcy in an attempt to fix or gain some control of their finances and get back on stable financial footing again.
A Few Facts on Debt with Credit Cards
When dealing with money it is important to get a complete picture and know the numbers. The average credit card not the individual but the card currently carries a balance around $1000. If you took this $1000 balance and only paid the minimum 2% payments each month it would take about 22 years along with an additional $2300 to pay off the debt.
On the national average the American household is starring at almost $8500 in debt each month on their credit cards. The average debt on credit cards has tripled since 1990.
It is sad that many consumer have no idea how much interest they are spending each year, among the unknowns are those how do not have a worry about how much they spend on interest until they must face it down. The average American is paying out from their sweat and hard work more than $1200 per year in interest. That figure is enough to cover one mortgage payment and then some.
For those struggling to make the mortgage payment each month, start looking at your spending on the credit cards.
Interest rates are also rising with the average rate hovering around almost 19% and inching higher. Some credit cards start with a rate of 23% APR and near the 30% mark for those with damaged or bad credit. If you surveyed the American credit card holder 50% would never share what they owe in debt, 23% carry cards which are maxed out, 13% can claim to be late at lest 30 days on a payment sometime in the past 12 months and 11% can boost that their card debt is in collections. Too many individuals have a debt to credit ratiowhich is out of balance.
Poor credit and financial management on a personal level is a growing economic problem. A problem that is slowly taking its toll in a variety of ways in many different industries and ripping apart American families. It is a problem that individuals must begin to address for their own well being both now and in the future.
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