America A Nation In Debt?

Managing Your Debt

America A Nation In Debt?

31st July 2007

Americans are a nation in debt. Our biggest consumer debt is credit card debt with the average house hold owing $9,200.00 in credit card debt. If that doesn't shock you then get this. According to Credit Cards.com the total US consumer debt (which includes installment debt, but not mortgage debt) reached $2.46 Trillion in June 2007, up from $2.398 Trillion at the end of 2006 (Source: Federal Reserve). Folks we are more in debt this year than we were last year now if that doesn't concern you then I don't know what will.

Managing Your Debt I visited the credit cards site and the statistics were scary I could feel my blood boil with every word coming off that page. Here are some more statistics from Credit Cards.com:

Total US consumer revolving debt reached $904 Billion in June 2007, up from $879 billion at the end of 2006 (Source: Federal Reserve)
The median U.S. household income is currently $43,200 and the typical family's credit card balance is now almost 5 percent of their annual income. (Source: Federal Reserve)
Of the households that do owe money on credit cards, the median balance was $2,200 -- meaning half owe more, half less. (Source: MSN Money)
8.3 percent of households owe $9,000 or more on their cards (Source: MSN Money)
51 percent of the US population has at least two credit cards (Source: Center for Media Research)
The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time. In fact, we found that one out of four consumers had credit histories of 20 years or longer. Only one in 20 consumers had credit histories shorter than two years. (Source: myfico.com)

You can find more of these hair raising statistics at Credit Cards.com. This indicates to me that as consumers we are spending way too much and paying high interest rates for it too. Now for someone who owns the credit card company or has shares then this is good news but I want to ask you this. Would you rather be the person being paid or the one paying? You decide.

"If you think education is expensive, try ignorance." - Unknown

Comments (11):

Steve Says: The increase between 2006 and 2007 is scary | 07.31.2007 |

Lilian Says: I agree we need to stop all this crazy spending | 07.31.2007 |

Ace Says: I guess I need to find out how to become parnter with a credit card company! | 07.31.2007 |

Jaden Says: The stats for 2007 are only up to June so the figures will be worse come December | 07.31.2007 |

Ashley Says: Although admittedly consumers are spending too much other factors also exist like inflation so yes consumer debt is a cause for concern but we need to consider the whole picture here | 07.31.2007 |

Mildy Says: These are some worrying statistics | 07.31.2007 |

John Says: We need to learn to stop using credit cards for everything | 07.31.2007 |

Seraya Says: This is bad and I didn't know how bad the situation really is | 07.31.2007 |

Maude Says: I can understand because the credit card companies go as far as enticing college students and they spend a lot. My son Ian is really having trouble with his credit cards | 07.31.2007 |

Vince Says: It is so important to teach our kids about bad debt and how to manage money maybe these are the types of statistics we all need to be seeing to realize how big our problem is | 07.31.2007 |

Nancy Says: I was reading these and saying oh my goodness | 07.31.2007 |

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America A Nation In Debt?

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