Article Advise

submitted: Sep 5th 2008 | by: WilliamBlake | Total views: 2 | Word Count: 418 | |

The average credit card debt in US is growing larger and larger by the day and year. It is a problem that is creating serious financial issues not just in the credit card market but in other markets as well. The average credit card debt in US numbers also have an effect on things like mortgages, bankruptcy, foreclosures, and car and school loans.

Credit card debt consolidation and other even more extreme methods that people turn to in order to eliminate their credit card debt have become more popular as the average credit card debt has gone up. Consider the actual statistics on credit card debt in America to see if the situation is really all that serious.

Average Credit Card Debt in US ??" The Facts

Here are some of the statistics. The average American credit card is carrying a balance right now of about $1,000. If the cardholder pays nothing more than their minimum two percent payment on that balance each month, they will have finally paid off the entire balance after twenty two long years. During that time, the interest charged to the account will reach $2,300.

On a national level, the average American household currently owes $8,500 in credit card debt. Individuals who have at least one credit card currently average more than $9,000 in debt. These statistics indicate that, since the year 1990, the average amount of debt that Americans owe on their credit cards has increased by 300%.

If you are wondering, what you spend in interest or even if you have not worried about until now, the average American spends more than $1200 a year in just interest payments alone.

This means that the average interest charges that are being paid on credit cards are larger than those that individuals have to pay for their rent or mortgage payment.

The average interest rate being applied to credit cards is also steadily increasing, currently being found at 18.9%. Introductory rates can sometimes be 23%. If you have had credit problems in the past, your rate could even be 30%. Half of all Americans claim that they will never tell their friends about the amount of money they owe on credit cards. The percentage of people who have reached the maximum limit on their cards: 23%. During the last year 13% of Americans have made at least one payment thirty days late. And 11% have admitted that the collection process has begun on their delinquent accounts.

About the Author

Are debt consolidation non profit services the best way to handle consolidation? Maybe, but not always. Get the full story on the Inside Debt Consolidation website

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