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Wednesday, October 28, 2020

Facts about credit card debt in America

Posted by admin on November 12, 2010



Debt problems have become more similar like a baseball game in America. An average US citizen is keeping 5- 15 credit cards in their wallet and they are using these cards to make the smallest purchases. The society in US is changed from cash – savings society to a credit – debt society within a span of few years. Take a look at the following facts.

According to the Federal Reserve Board, the American households are reaching to a $2 trillion mark in debts. This is just excluding the mortgage debt.

On an average, one person in a US household is having at least $9000 of debt in one single credit card. So, if a typical household has 3 credit cards, that single family is having $27000 of debt.

What are the reasons for such a high growth of consumer debt?

The answer to this question is credit card companies offering credit cards to every single adult in the family. Previously, the credit card companies used to offer credit to only those people who are responsible and disciplined in making financial decisions. They knew that the person to whom they are offering credit will be able to repay his debts in a reasonable period of time. Nowadays, credit card companies are shoving these cards to almost everyone without reviewing his/her past credit history. There are companies sitting outside the college and offering credit cards to the students of the first year. It is expected that the students who have got a credit card for the first time in life will involve into impulsive purchasing habits by using a credit card. This is what most of the credit companies want when they offer a card to an 18 year old student. They know that s/he will get involved into a lot of spending habits and will rack up to $20,000 worth of credit card debt. He is expected to spend the rest of his life paying his credit card debts with high interests and fees. The story of the credit card debt in US starts from that age and has no end until your death, or is forced to file for bankruptcy or leave the country.

Here lies the importance of debt negotiation program to get rid of credit card debt problem. Debt negotiation plan can reduce your total amount of due to the credit card company with an easy installment monthly plan. So if you are having such problem then don’t waste time any more but go for a reputed debt negotiation company.