The Average Credit Card Debt In US ??” A Growing Problem
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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
Let us take a look at some of the numbers that are appearing when dealing with credit. The average credit card currently has a balance of around $1000. On this $1000, if only the minimum 2% payments monthly are made it would take 22 years plus an additional $2300 in interest in order to pay the debt off.
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%.
What about statistics on just interest rates? The average American who has a credit card pays over $1,200 annually in nothing more than interest charges.
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.
On average, the interest rate for credit cards is 18.9% and it is going up. Some cards have introduction rates of as high as 23% and as much as 30% for those with damaged credit. 50% of Americans would never tell a friend how much they own in credit card debt, 23% have maxed their cards, 13% are late 30 days on payments within the last 12 months, and 11% admit their cards when into collections.
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