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Learn about the alarming statistics of American household debt: average card balance, interest rates, bankruptcies, and causes of financial trouble. Discover how to manage debt effectively to avoid financial dependency.
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The average American household has 13 payment cards, including credit cards, debit cards and store cards. There are 1.3 billion payment cards in circulation in the United States. Average Card Balance - the typical U.S. household carries an average credit-card balance of $7,500 up from less than $3,000 in 1990
An $8,000 debt at a rate of 18% interest will take you over 25 years to repay and cost you over $24,000 in the long run. On average, you will spend 112% more on a credit card purchase than when using cash. A Federal Reserve study showed that 43% of U.S. families spent more than they earned.
Bankruptcies have doubled - Personal bankruptcies have nearly doubled in the 90's to 1.2 million per year. With credit-card debt as the significant factor. Almost one out of every 100 households in the United States will file for bankruptcy. 96% of all Americans will retire financially dependent on the government, family, or charity. (U.S. Dept. of Health & Human Services)
Common Causes of Financial Trouble - According to the Debt Solutions of America average client profile the cause of financial problems is broken down accordingly:Excessive Use of Credit / Over Obligation: 39% Reduced Income / Unemployment: 24% Poor Money Management: 15% Divorce / Separation: 8% Other: 14%
Average Student Credit Card Debt 2000 - The undergraduates in the 2000 Nellie Mae analysis carried an average credit card balance of $2,748, up from an average of $1,879 in the 1998 study.
