Scary Credit Card Statistics and How to Avoid Being Part of it l
In times like these the average American is becoming more and more aware of their credit card debt burdens. 10 years ago credit cards seemed like a gift from God. The buy now pay later concept spread like a wild fire around the nation. In the past 2 years credit has dried up and the employment rate is bleak. Just to get an idea of how out control it has gotten here are some stats of credit card debt
in the United States.
* In 2008 the U.S. Population had an estimated $972 billion worth of credit card debt
* 78% of households have at least 1 credit card, 51% have at least 2 credit cards, and 14% have more than 3 credit cards
* In 2008 the average undergraduate student had $3,173 in credit card debt
* U.S. cities with the most credit card debt according to percent of income owed to credit card companies
o Miami – 22.61%
o Tampa Bay – 17.10%
o Los Angeles – 16.81%
* In 2006, consumers spent $17.1 billion in credit card fees
* In 2008 the average household had $10,679 in outstanding credit card debt
Sources: Forbes.com
These numbers are just snapshot of credit dangers America is facing. If you find yourself part of these statistics you might be wondering what the best debt relief methods are. Well, everyone has their own unique situation and there isn’t a simple one size fits all answer. Keep in mind it’s never too late to get started. Here are a few methods on how you can get out of debt, along with professional services that can help you along the way.
Get a grip on reality :–
You have to understand that for every day you are in credit card debt you are wasting hours of work. Think about it literally. If you get paid hourly you can work out how many hours go into paying off your credit card debt. For instance, if you get paid $10 an hour and you spend $200 on your credit card bill, that’s 20 hours of your life going to credit card debt. Most of this money was never spent on actual items you purchased, but the interest you’ve been paying to the credit card companies. This idea should give you the first step necessary to get out of debt, motivation.
Sense of urgency : –
You need to realize that every day you delay paying off credit card debt the deeper you will get into debt. The next time you have some extra cash think to yourself before you spend “if this went to my credit card bill I could get out of debt faster”. Even if it’s $20 it’s a good habit to get into. You have to realize that putting of your debt winds up hurting you in the end. One day of delay will turn into 5 years and you’ll still find yourself in credit card debt.
Form a plan :–
Even if it’s not most specific plan get something out on paper. Track down all of your different debts and put them in order of priority. You can choose the priority whether it be highest interest rates get paid first or highest amounts get paid first. Make a plan and set goals. Each month set a goal to pay a certain sum of money toward your debt.
Get Help :-
There are professional services that can help you with debt. Research various programs online. Start by typing in debt management, credit counseling, debt settlement, and debt consolidation. These are the most popular debt relief options not including bankruptcy. Look at what different websites and services have to offer. Many of the debt relief programs out there offer free consultations. Give your name and number and see what they have to offer. If you decide a certain debt relief program might work for you, do some research on the company and make the decision on whether professional help is right for you.
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