Consumer Debt Statistics

The world of consumer debt is huge: here are some consumer debt statistics that are essential to know.

Today, consumer debt statistics can show just how much trouble the country is in when it comes to debt. There are many people that face a forever stretching pile of debt and they can not see over the top of it to get through it. This is very difficult and many individuals will feel trapped and without options.

The Hard Facts

To show the real situation in the US, here are some consumer debt statistics that every American should know.

One out of every one hundred families will file bankruptcy in their lifetime within the US. This shows just how many individuals have found themselves well beyond solutions to getting out of debt. The percentage of bankruptcies filed by people that just do not want to pay for it is quite low. This shows that most of these individuals just do not have any way to get around it.
The average family has 13 different credit cards. This number includes standard credit cards, store credit lines and debt cards. As a country, there are over 1.3 billion of these credit cards in circulation today. This is tempting fate, so to speak. With so many various credit cards to choose from, just how many payments will need to be paid per month? And, how many of those will not be paid timely?
On average, an American couple will have about $6000 worth of debt that they carry with them each month. By using a simple tool called a debt calculator, this means that if the individual only pays the minimum payment each month, that it will take them almost 20 years and well over $5000 in interest alone payments, and that is at an interest rate that is low at 15%. Not to mention additional charges, annual fees, over the limit fees and late fees that are commonly added to it.
For those that use credit cards to purchase everyday things, they tend to spend 112% more then they would if they were to just pay with cash. When it comes to spending cash, people are much more cautious as to how they will spend their money. This makes sense, but living on a cash only basis is what should be done. Could many do this then?

The Consequences of Debt

So, what does this show? The consequences of this debt is enormous. For example, only 2% of people actually live in homes that are paid off. And, for those that are selling their homes to move into larger ones, to move to a new location or losing them due to lack of paying them down, they will still owe, on average, 90% of their mortgage.

Even more worrisome is that those that are retiring right now, 96% of them will not be able to support themselves but will need to rely on their families, charity and the government to support them.

These consumer debt statistics come from the Federal Reserve, the US Departments of Health and Human Services, and the National Association of Realtors.

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Did You Know...

49% of adults, and 66% of US high school students got F's on a national test on their knowledge of basic economic principles.

Food for Thought...

"I'd rather go to bed without supper than rise in debt."
-Ben Franklin.