$1,000,000,000,000 (this crazy looking break is called ane trillion) addition dollars of credit carte debt is currently carried on the shoulders of the U.S. consumer. This is such an astonishing milestone that I decided to create a niggling inquiry in addition to study on US consumer credit carte debt. And I'm glad I did because this inquiry led to to a greater extent than or less really interesting statistics in addition to information.
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| Consumers remove hold countless credit carte choices |
The credit carte has perish every bit American every bit apple tree pie. We all remove hold a credit carte in addition to most of us remove hold to a greater extent than credit carte debt than nosotros would aid to admit. These financial products remove hold been the grease inwards the wheels allowing the US economy to flourish in addition to grow at astonishing rates over the past times several decades.
To the U.S. consumer, accuse cards remove hold perish a purpose of life. They are a work solid staple, a correct of passage to adulthood, in addition to fifty-fifty a symbol of economical status.
Credit cards tin give the axe live a cracking fiscal tool. Especially for those amongst wealth. The improve a person's credit in addition to purchasing mightiness the improve the credit carte program. These consumers volition bask lower involvement rates, higher spending limits, better perks, in addition to greater rewards.
On the other hand, for to a greater extent than or less individuals, these revolving credit accounts tin give the axe live the catalyst towards fiscal doom. Thousands upon thousands of college kids remove hold had to file bankruptcy every bit a termination of overspending. The involvement rates tin give the axe live has high every bit 36% in addition to then when these youngsters arrive over their heads the province of affairs tin give the axe chop-chop snowball in addition to perish unmanageable. This results inwards either bankruptcy or if they are lucky to a greater extent than or less tin give the axe settle credit carte debt through negotiations amongst the credit carte company.
So nosotros tin give the axe all grip that credit cards tin give the axe live both skilful in addition to bad. They aid the economic scheme in addition to the globe of financial mistake. Now, let's dig a niggling deeper in addition to remove hold a await at the facts of our credit carte utilisation every bit a nation.
U.S. Consumer Credit Card Debt Facts
- The average U.S. work solid credit carte residuum is merely a few dollars shy of $16,100.
- The average carte involvement charge per unit of measurement is 19.4%.
- The average U.S. work solid pays over $1,330 dollars inwards involvement every year.
- Since 2012 full credit carte debt has increased past times 10.5%
- Approximately 1 out of ii Americans behave a credit carte balance.
- US Consumers every bit a whole remove hold a carte residuum merely over ane trillion dollars. Let's write that numerically in ane lawsuit to a greater extent than merely to reckon how absurd that break actually is; $1,000,000,000,000.00 - WOW!
Other Interesting American Borrower Facts on Debt in addition to other Financial Behavior
- Average U.S. Household has a full debt of to a greater extent than than $130,000.00. This figure includes all debt such every bit a mortgage, automobile loans, etc.
- Average U.S. work solid debt has increased over 50% since 2002.
- US consumers remove hold a full of 1.4 trillion dollars of educatee loan debt. That's almost 40% to a greater extent than than credit carte debt.
- Student loan debt has increased 186% since 2007.
- Over the lastly thirteen years, U.S. households are falling behind inwards terms of income to cost of living. Check out the stats below...
- Average income has increased 28%
- Cost of living has increased 30%
- Medical Expenses remove hold soared a whopping 57%
Final Financial Analysis of the Financial Data
So nosotros remove hold lay out to a greater extent than or less solid figures pertaining to the fiscal wellness of American families. So what are the implications of this data?
This information leads me to believe that U.S. households are doing OK. Income is on the rise. We are spending in addition to borrowing to a greater extent than which implies that nosotros are confident inwards our economical future. This is the skilful news.
The bad intelligence is that technically the cost of living is growing faster than our income is rising. This agency nosotros are getting poorer. I'm non freaking out over this. The deficit isn't huge. Also, I recall it is clear that the existent work is the medical expenses. Once nosotros are able to larn that side of things nether command nosotros should fix the deficit in addition to fifty-fifty brand to a greater extent than or less gains.
I also desire to cite that this educatee loan debt is a flake out of control. I recall nosotros should tighten upward the government-backed lending.
Final Thoughts on Credit Cards
I recall most people would grip amongst me when I say I remove hold mixed feelings towards credit cards. However, my bottom trace is definitely pro credit card.
Though people remove hold in addition to volition maintain to come across fiscal problems every bit a termination of credit carte use, inwards the end, it's non the credit carte that's the problem. It's the credit carte holder who is the problem.
Also, credit cards remove hold done in addition to then much for the economic scheme that they are invaluable inwards to a greater extent than or less respect. They remove hold drastically increased the availability of business opportunity.
My terminal declaration that favors the utilisation of credit cards has to create amongst the consequences of non using them. If a consumer uses cash instead they are at a disadvantage compared to the exact same consumer who does utilisation a credit card. This is because of the cash dorsum wages programs. Everyone pays for those rewards every bit the credit carte fees increment prices, but alone credit carte users tin give the axe benefit from that program.
This alone leaves ane to a greater extent than enquiry to ask...
About My Research in addition to Sources
You may live bespeak yourself where I got all this cool information on credit carte debt in addition to othe U.S. consumer fiscal information. I made a listing below of tertiary parties that I used to inquiry this fiscal in addition to economical information.
- US Census
- Federal Reserve Bank of New York
- Nilson Report
- Nerd Wallet
- FinanceGuy.org
- Wikipedia.org
- CNBC
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