Wednesday, August 20, 2008

USA Credit Card Debt

Arrears, the situation in the United States is particularly grim. According to the study, the average debt of about U.S. $ 10000 in debt and that too whopping 14% interest rate. What are the most important things that lead to individual credit card debt? In this article we analyze some of them.

1. Over borrowing

Credit cards provide a very easy way to take money. Just swipe and you're done. This ease of impulsive buying CDs and without any forethought credit card holder is continuing, and making purchases with his credit card, he will never worry that this credit card debt and money should be returned with interest.

2. Paying only the minimum monthly

All credit cards comes with a minimum amount of payment referred to therein. This is usually as a percentage of the outstanding balance on credit card subject to certain conditions. This is the minimum amount payable by credit card companies each month. The sad part is that people take it as the only thing to be done and still just one month minimum. If you're just paying the minimum monthly rates on your credit card debt every month you'll need $ 5000 more than 30 years to repay and in the process, you paid by credit card interest of more than $ 5000. And if your credit card debt is $ 10000, and you just pay the minimum monthly chances are good that you can never repay the debt in your life.

3. Several credit cards and debt default

The average American household has about 5 credit cards, which more than their normal requirements. What happens is that with multiple credit cards, they fail to repay and to strike with late payment fees, high interest rates and negative comments about their credit history. This makes credit more expensive. To make matter worse, some people get new credit cards at enormous interest rates to repay existing debt, credit card, and seriously caught in debt trap.

Credit card debt is growing alarming rate, the situation at the front of savings is very grim and as the great depression crisis is looming in American society.

Share your thinking

Post a Comment

Eliminate Consumer Credit card debt © Layout By Hugo Meira.