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The Latest on Credit Card Debt

[Jul 6, 2007.]


For years, a number of financial experts have been saying that many Americans are in over their heads when it comes to credit card debt. They say that consumers are charging up a storm—leading to years of financial frustration. But just how large is the debt mountain that many Americans are buried under?

The answer may lie in a new survey conducted by an outfit known as Cardtrak.com. The organization questioned a staggering number of consumers online—55,000 all told.

The survey indicated that 64 percent of the cardholders questioned have amassed credit card balances of less than $10,000. Still, more than one in ten of those consumers surveyed have significant credit card debt. Some 13 percent reported balances in excess of $25,000. Obviously, given today's credit card interest rates, it could take years for the average consumer to pay off such debts.

Still, a number of consumers are apparently trying, at least, to live within their means. Nearly one-third—31 percent—reported paying off their balances each month, while another seven percent avoid the temptation to charge altogether by refraining from applying for credit cards.

Cardtrak.com separated out those cardholders who don't carry a balance and found that the average credit card balance per household is $9,882. This is a significant figure, since most surveys on the subject do not segregate those who carry a credit card balance all the time from those who pay off their balances each month.

Consumers who are interested in finding out how long it will probably take to pay off their charge card debt can consult an online calculator. You simply type in all pertinent financial information, and the calculator does the figuring for you. Finding out just how long it will take to pay off all your credit card debts can be an eye-opening experience.

Julie Ann Amos
July 6th 2007
More Information:

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