the amount of credit card debt in America

5 12 2007

Americans have $900 billion (with a B) in credit card debt.  That’s nearly a trillion.  It’s no wonder our government is in such debt problems, because most of the citizens are.  That’s a lot of money that is owed, and most of it is probably at a fairly high interest rate.  This is probably a bad sign for our economy.

How many people are in America — something like 300 million?  If so, that would average out to about $3,000 in credit card debt for every American.  Yet the average amount would be much higher because not everyone has credit cards.  Either way, that is not healthy at all for your finances!

I don’t understand why schools don’t teach on financial issues like credit card interest rates, mortgages, investing, etc.  This kind of information should be taught to ALL high school students so they will not get in “over their heads” in credit card debt and so they won’t get ripped off when buying a car or a house.




8 responses

6 12 2007
Justin Jordan

Well, this sure is a subject close to my heart! The sad thing is that I knew all about credit cards. I was even a financial service representative at one point, and I knew to stay away from them. However, the loss of my job, and never really having enough to begin with, is what has led me to use my credit cards in order to survive!

I hate credit card debt. I worked very hard to have a good credit score, and now it’s all been for nothing. Well, I can’t say for nothing, if I didn’t have those credit cards (as a result of my once excellent credit score), I would be on the streets right now.

6 12 2007

Justin, it’s my understanding that having debt on your credit card doesn’t necessarily lower your credit score. Some people even recommend carrying a balance occasionally to raise your score (although I don’t recommend that, nor do I think it’s necessary). What’s most important is that at least the minimum is paid each month and it’s never late.

7 12 2007
Alessandro Machi

The 900 billion dollars is not real. It’s a prefabricated amount by the finance industry that has figured out how to legally steal from millions of americans.

There’s no reason why my ideas as presented both in and
can’t be implemented.

We are reminded to be civil and respect people in suits, then the people in suits spit on us with over 100% interest rates masquerading as 25% interest.

7 12 2007

While reading about credit card debt, I found that some churches now accept credit cards and/or debit cards. I haven’t seen any that do, but maybe it just hasn’t hit this area of the country yet. I read that 55% of 200 local churches in Dallas accept credit cards and/or debit cards. I’m not sure that’s a good thing…

9 12 2007
Alessandro Machi

Credit Cards will neve be a good thing until there is a direct link that caps the amount of interest you pay on the same debt.

One family was paying 200 dollars a month on their credit card debt yet only 24 dollars was being applied to the actual principle, the rest was being applied to basically treading water.

In this instance, what the bank was calling 32 percent interest is actually 733% interest.

18 12 2007

Having a low balance is alright, but a high balance actually does lower your credit score. Lenders look at your debt ratio to determine how good you are with managing your money. If you have high balances it shows that your are likely to extend yourself.

I won’t charge you for this lesson, but donations are appreciated. LOL.

By the way, my church accepts credit cards. Isn’t that strange?

18 12 2007

I realize some people are against credit cards, but you can make the system work for you. When you get cards that offer 1% cash back or reward points, that can really add up. The key is not paying interest or late fees. If you pay your bill off in full each month, then all the cash back is extra money. And sometimes credit card companies will run promotions, giving you up to 5% cash back (or points) for a certain time or in certain categories. That really adds up.

If you’re disciplined enough to pay off your bill each month, you can put everything on your credit card, even utility and phone bills, and get even more cash back. But you must pay your bill off each month for you to come out ahead.

30 03 2008
tv brackets

The “rip-off” scheme usually can be traced initially from the offer. What schools need to teach their children is to how to manage your own money and debt, so in the future, the would stay on their own income platform and won’t fall off because of lack of initial planning.

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