Wednesday, September 24, 2008

Beware Credit Card Statistics and dynamically monitor

It is no secret that the debt problem is more a problem for the Americans today, as never before. For the first time in the history of our country, the amount of savings in this country is negative. We spend more money than we have returned. The problem is becoming more widely, as consumers more freedom to spending with credit cards. Indeed, families with at least 1 credit card in the home of more than $ 9000 in credit card debt.

Almost a third of U.S. shoppers made of plastic now, with the result that many speculate that the end of May on all transactions in electronic form. Credit cards can be a useful instrument, but abuse can cause suffering for the card. There are several reasons why credit card debt is becoming an increasingly serious problem:

Industry / ease of obtaining loans: Credit card issuers spent more than $ 6 billion-mail offers for credit cards, as well as for adults, on average, more than 20 of them shippers each year. In the period from 1995 to 2006 the number of credit cards in the wallets of Americans increased by 46% to 1.3 billion cards.

Today's credit card requires little more than a signature. Card companies have already realized that even if only a small percentage of borrower default or declare bankruptcy, profits are still substantial. The recent IPOs Visa and MasterCard stocks suggests that shareholders believe that these gains will continue to grow.

Attractive offers: Since credit cards are so easy to get now, the card companies recognize that they need to offer something different from the competition to win consumer credit business. Promises to frequent flyer miles, cash rebates, gift cards, and other goods and services with virtually all credit cards. In all sporting events in the country, are created when the customer can apply for a credit card and you will receive a T-shirt or beach towel from the teams they support.

College campuses offer gifts to students in the hope to maintain current accounts with them as soon as possible. There is no risk of disclosure of credit card debt with these proposals, and too many people their long-term credit risk to reward in the short term.

The lack of discipline and training for young people: The problem of the debt of the largest credit card with young people, which avoids the problem before they know it better. Student brings an average of $ 2200 credit card debt and post-graduate transport an average of $ 5800th The students seem to believe because they are better-paid job after school, they can be used to repay its long-term debt.

Over time, they recognize the problems they are often almost impossible to recover. Credit card debt burden of many of these students since many years.

The answer to our problems with the credit card lies in the discipline and education. If you can not afford to pay off your credit card at the end of the month, May you must again make unnecessary purchases.

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