The Truth About the Average American's Credit Card Debt
Many sources, including the government, the media, and even bank officials, have claimed that the American people have a lot of credit card debt. There are many rumors going around saying that Americans owe thousands of dollars each in credit card debt. They usually will give statistics with their claims to help back the claims up. However the truth about Americans credit card debt is often skewed and hidden. The only way to see the truth is to break down the numbers.
There's a statistic that claims the average American carries more than $8,000 in credit card debt. This statistic is widely believed because of its publicity. However the fact is that the statistic itself is skewed in the way it was found. The average American is conceived of as having kids and living in a multiple bedroom house with a basement. We can see that the word average can easily confuse a person about what it really means.
The truth is that most American households don't have debt. In fact only about 1 in 20 American households have $8,000 or more in debt. This means that the majority of American families have paid off their credit cards or don't have credit cards. Out of the remaining households, most of them only owe $2,000 or less. An average can't tell you how much the average American owes as it's a skewed number.
The reason that the truth about credit card debt is hidden is because of how they got the $8,000 number. They got it by taking $750 billion, which is all the outstanding credit card debt, and divided it by 84 million, which is the number of American households that have credit cards. While this may seem reasonable at first glance it's just a myth when you're talking about the average American household.
The truth about credit card debt is that most Americans aren't even counted in the calculation. There are many American households that have no credit cards. In fact 23.8%, almost a quarter of American households, have no credit cards. That's a quarter of American households that weren't even factored into the calculation. Another huge portion of households pay off their credit cards in full. How many households? 31.2%! The truth about credit card debt is that 55% of Americans have none. We can further break down the remaining 45% of households.
For the $1,000+ range there are only 29% that are in that range and only 21% of households that owe $2,000 or more. Finally we can see that only 4% of households owe $10,000+ and 1% of American households have credit card debt in excess of $21,000. We can see that very little to nothing is owed by most of the American households. There are only 21% of American households that actually owe more than $2,000 in credit card debt. This is only 1/5 American households that owe a decent amount of money to credit card companies and we can see that the $8,000 is nowhere near what the average American household owes in credit card debt. - 23223
There's a statistic that claims the average American carries more than $8,000 in credit card debt. This statistic is widely believed because of its publicity. However the fact is that the statistic itself is skewed in the way it was found. The average American is conceived of as having kids and living in a multiple bedroom house with a basement. We can see that the word average can easily confuse a person about what it really means.
The truth is that most American households don't have debt. In fact only about 1 in 20 American households have $8,000 or more in debt. This means that the majority of American families have paid off their credit cards or don't have credit cards. Out of the remaining households, most of them only owe $2,000 or less. An average can't tell you how much the average American owes as it's a skewed number.
The reason that the truth about credit card debt is hidden is because of how they got the $8,000 number. They got it by taking $750 billion, which is all the outstanding credit card debt, and divided it by 84 million, which is the number of American households that have credit cards. While this may seem reasonable at first glance it's just a myth when you're talking about the average American household.
The truth about credit card debt is that most Americans aren't even counted in the calculation. There are many American households that have no credit cards. In fact 23.8%, almost a quarter of American households, have no credit cards. That's a quarter of American households that weren't even factored into the calculation. Another huge portion of households pay off their credit cards in full. How many households? 31.2%! The truth about credit card debt is that 55% of Americans have none. We can further break down the remaining 45% of households.
For the $1,000+ range there are only 29% that are in that range and only 21% of households that owe $2,000 or more. Finally we can see that only 4% of households owe $10,000+ and 1% of American households have credit card debt in excess of $21,000. We can see that very little to nothing is owed by most of the American households. There are only 21% of American households that actually owe more than $2,000 in credit card debt. This is only 1/5 American households that owe a decent amount of money to credit card companies and we can see that the $8,000 is nowhere near what the average American household owes in credit card debt. - 23223
About the Author:
Layla Vanderbilt is the webmaster for a leading website that offers for instant bad debt consolidation advice and guidance.
posted by X - Men @ 5:59 AM
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