Truth about Debt
The growth of US consumer debt is a concern for all of us but what does it actually mean?
- Over 70% of all marriages that end in divorce are due to financial problems.
- 75% of all Americans are THREE (3) paychecks away from bankruptcy.
- Of those Americans 1.5 million will file bankruptcy; 1.5 million will participate in consumer credit counseling; and 37 million will TRY TO NEGOTIATE WITH CREDITORS THEMSELVES – which the creditors love, because the people in debt trouble are not professionals and do not know how the system really works.
- On average, when you buy something with a credit card, you pay 132% MORE THAN IF YOU USED CASH.
- Typical minimum monthly payments for a credit card are divided into 90% interest and only 10% to principal reduction. The principal amount on your credit card is what the product or service you bought cost you.
- Over 71% of all credit card accounts have only the minimum monthly payments being made by consumers.
The total amount of consumer debt in the United States stands at nearly $2.5 trillion dollars – and based on the latest Census statistics, that works out to be nearly $8,100 in debt for every man, woman and child that lives here in the US. (not household)
This is consumer credit debt which does not include debt secured by real estate. So if you’re thinking that number has mortgage values in it, it doesn’t.
These are astronomical numbers but take a look at how much do YOU pay for YOUR Debts.
Clear Financial Team
