5 Extreme Statistics for Credit Card Debt
written by Credit-HQ ExpertIf you need a push to get out of debt then weigh up your personal credit against average America.
1. What is the credit card debt of the US?
$972,494,000,000 made up the debt that was revolving in the US. Credit card debts from finance companies, securitized debt balances, credit unions and commercial banks were all incorporated when calculating this figure. (Source: Federal Reserve)
2. How do debt balances in the US alter from year-to-year?
There was a rise in the balances of credit card debt by 75%. This took place in America from 1997 – 2007.
2007 – $972 billion (7.7 % increase)
2006 – $902 billion (6.2 % increase)
2005 – $849 billion (3% increase)
2004 – $823 billion (4% increase)
2003 – $791 billion (2.8% increase)
2002 – $769 billion (4.4 % increase)
2001 – $736 billion (4.8 % increase)
2000 – $702 billion (12 % increase)
1999 – $627 billion (5 % increase)
1998 – $597 billion (7.5 % increase)
1997 – $555 billion
In prior decades there were also important increases:
1987 – $169 billion
1997 – $39 billion
1967 – $1.4 billion
(Source: Federal Reserve)
3. What is the amount of credit card debt held by the average American?
The balances of credit card debts are as extensive as installment borrowing. There is less credit card debt held by highest and lowest earning categories, wealthiest category and families with a head of household sixty five years or older. There was an increase in the number of families with debt from 2001 to 2004. This balance increased from 1.8 points of percentage to 46.2 percent. Prior to this the increase was much less. This rise was seen in all population groups. The numbers with debt decreased in the following groups: two lowest earning, lowest wealth, youngest, nonwhite or Hispanic families and renters.
The general median balance for debtors went up 10.0 percent to $2,200. 15.9 percent to $5,100 was the mean increase. There was hardly any change to the median for the next three years. However, it had gone down by 8.3 percent. Of late, most population groups experienced a noticeable rise in median balance. Borrowing went down in the following groups: youngest, lowest earning and next to highest earning.
A large number of families don’t have balances even thought they have credit cards. In 2004, 58.0 percent did have a balance. This was forty one out of 74.9 percent. In 2001, 76.2 percent had cards but only 55.4 percent had balances that were outstanding.
4. How much of the average American’s earnings are in credit card debt?
The average American household earns approximately $43,200 in median terms. This means the level of debt from credit cards is from 5 to 12 percent of yearly earnings. (Source: Federal Reserve)
5. How much are credit cards costing American consumers in debt?
A consumer who has a balance of $5,000 and an APR of 16% and who pays $125 per month requires 4.8 years and $2,000 in interest to repay the balance.
If the APR went up to 25% and the balance stayed the same a consumer would require 7 years and $5,800 in interest to pay back the debt.
If the APR came down to 9% and the balance stayed the same a consumer would require 4 years and $966 in interest to pay back the debt.
These are the facts and figures to urge you to pay off your debt.
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