A recent Reuters article details the grim reality that is growing debt, when it comes to Americans in their 20s and 30s. “Researchers that people born between 1980 and 1984 have on average $5,689 more debt than their parents had at the same stage of their lives, and $8,156 more than their grandparents.” Read the whole article here: Younger Americans have more credit-card debt problems -study
The repercussions are not to be taken lightly; the payoff rate trends and statistics themselves suggest that many of these younger adults may in fact end up dying with their credit card debts. Extreme as it may sound, this might not come at a surprise at all due to economic climate we are in. With the national umemployment rate still remaining at above 7 percent and total U.S. consumer debt at nearly $2.5 trillion as of December 2011 according to the Federal Reserve, it is truly no wonder why many Americans struggle to successfully reduce their credit card debt.
Here are some very interesting credit card statistics (source: CreditCards.com)
- Average number of credit cards held by cardholders: 3.5, as of yearend 2008 (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010)
- Average APR on credit card with a balance on it: 12.78 percent, as of November 2011 (Source: Federal Reserve’s G.19 report on consumer credit, released January 2012)
- Total U.S. revolving debt (98 percent of which is made up of credit card debt): $801 billion, as of December 2011 (Source: Federal Reserve’s G.19 report on consumer credit, released February 2012)
- U.S. credit card 30-day delinquency rate in January 2012: 2.93 percent. (Source: Moody’s, February 2012 report)
Read more: credit card statistics from creditcards.com
When people are faced with handling credit card debt, these days, just paying the minimum can seem like a difficult task. Sometimes, personal bankruptcy is the best option for a clean slate and fresh start. Do your research by speaking to a bankruptcy attorney if you are considering having your consumer debt discharged. The Manning Law Office does offers free consultations on bankruptcy and we also handle matters of credit card and debt collection lawsuits; call us at 949-200-8755 to speak with a professional.