debt
Drowning in Debt
How many days has it been since you received an offer for a new credit card? If you're like the average American, U.S. families are literally drowning in debt.
Consider the following:
- There were roughly five billion credit card offers mailed to approximately 200 million Americans in 1991. That's an average of one credit card offer per week.
- Each cardholder has, on average, eight credit cards.
- As of September 2001, the average outstanding credit card balance for households with at least one card was $8,562.
- Nearly 18 percent of all consumer goods are purchased with bank credit cards. Include retail credit cards and debit cards and the number rises to 24 percent.
- There are nearly 500 million consumer bank credit cards (VISA, MasterCard, Discover and American Express) in circulation and about 700 million retail and other non-bank issued credit cards.
- Of the 281 million people in the U.S., approximately 185 million of them use credit cards.
- There are 110 million households in the U.S. If you divided all the credit card debt among them, the average debt per household would climb $6,000. If you exclude households with no credit cards, the average debt tops $8,000.
It's obvious why banks spend so much time and money marketing their credit cards to consumers: We like our “stuff.” Americans tend to “buy now” instead of waiting to buy with cash in hand. And just when you think you've reached your limit, the bank notifies you that, “because you've done such a good job managing your credit (read, maxed it out), we're going to raise your limit!”
Eventually, debt may lead to bad credit ratings, or worse, bankruptcy. However, not all bankruptcies can be attributed to credit card abuse. College loans, hospital bills, mortgages and any number of unexpected bills can leave a family penniless. Regardless of the cause, about 25 percent of the adult population has some history of credit problems.
Background Information
The Road to Debt
Learn to guard against the four common causes of debt.
Save or Swim
Danger: Thin Ice. Most people wouldn't risk their physical safety. So why do we ignore the signs of a financial catastrophe?
Questions and Answers
What is the biblical approach to possessions and money?
Answer
Review Frequently Asked Questions
Stories
Prosperity and Pain
Finding blessings in the midst of incredible financial trials.
Credit—Not So Priceless
Every month, we spent more than we made and our balances ballooned. But it didn't stop us from purchasing a new living room set. Who could resist? Little did we know: we were digging a financial grave.
Living in Secret Debt
There's a high price to pay for acquiring debt.
If you've been through a experience related to this topic, we invite you to share your story with others.Share Your Story
Other Things to Consider
Even Though We Ain't Got Money…
That phrase – live on love – kept bringing to mind a song they played on the radio when I was a kid. I scoffed at its utter lack of common sense.
Learning to Roll With Change
It's not the most fun you'll ever have, but the results are worth it.
Related Topics
Transitions: Changing Jobs, Moving
Relationships: Communication Gaps
Parenting Teens: Communication Problems
