Credit Card Debt Statistics

In the United States, the debt levels of Americans have
continued to increase since the 1980s. It was during this time
that the use of credit cards greatly increased. Credit cards
companies begin looking for different ways to market their
products to consumers, and used such things as direct mail,
commercials, and other marketing tactics.

It was during the 1980s that consumers begin moving away from
cash and checks into credit cards. The cause of this is often
attributed to the start of the information age. As the use of
computers became more widespread, credit cards quickly
followed. It is estimated that the number of people using
credit cards during this time surpassed those who were using
checks and cash in a single year. The use of debit cards has
grown tremendously since this time as well.

The rise of debit cards are a direct result of the problems
seen with using credit cards. Statistics show that the average
American consumer owes about $9,000 in credit card debt. Many
people have made the mistake of thinking that they are using
their own money when they use credit cards to make purchases.
It is easy to forget that this money is owned by the credit
card companies, and they are simply allowing you to borrow it,
with the promise you will pay it back. The average interest
rate owed on credit cards in the US is about 14%.

It is easy to view credit cards as being "easy money." After
all, you don't have to work for it, and it doesn't have the
same effect on you that cash has. Statistics show that people
have a tendency to spend the money of others much faster than
their own. Recent data also shows that Americans are paying
even less of their debts than ever before. It was recently on
the news that the savings rate for Americans is negative, at
about -0.05%.

Though we live in an electronic age, being irresponsible with
your credit cards is a great way to end up with a life time of
headaches. Many high quality jobs now require you to have good
credit, and it is difficult to get a mortgage or a car if you
have poor credit. This is why it pays to be responsible with
how you manage your finances. It is best to stop borrowing
money and use your own funds to make purchases.


About The Author: Joe Kenny writes for the credit card
comparison sites http://www.creditcards121.com and also
http://www.cardguide.co.uk

Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=49169