Why do people fall into debt? How do these people manage to spend so much without even knowing it? The average American family spends a lot for food, clothing, shelter, gasoline, and other loans. The United States Federal Reserve said that 40% of families in America spend more than their monthly budget. It is not surprising why the average family has a lot of bills that are unpaid, especially when credit cards are put into consideration.
More data from the Federal Reserve suggest that debts are a common phenomenon among the population. As of 2006 to 2007, the current amount of debts owed to credit cards alone is $880 billion. In total, US consumer debts reached a whopping $2.4 trillion in that year, which includes total debts for car loans, medical bills, home mortgage companies, and more. Because credit cards are big problems when you have amassed huge amounts of overdue payments, financial consultants advise that you should get rid of your cards right away. After you have paid off your debt, cancel them all.
It will be best to opt for cash transactions from now on. About 14% of the US population of credit card holders spends above half of their allowed credit. In some sources, the average number of credit cards an American has in his wallet is four.
About 8.3% of the US population has already amassed a minimum of $9,000 on their credit cards. Having known this, don't you wish you belonged to these stats instead? There are about 20% of families in America who possess no credit card. Other sources also proudly present that 30% of families with credit cards were able to pay their recent monthly balance in full. Do not be one of the 2 million households in the US with more than $20,000 worth of credit card debts.
One way by which you can end the headaches caused by credit cards is to get a debt consolidation loan, specifically a credit card debt consolidation loan. To simply put it, this kind of loan involves taking out a huge debt to pay off several smaller debts, and those are from your credit card companies. This avoids the inconvenience of having to deal with each card company, and you will only be thinking about one fixed interest rate. Be sure you will be paying promptly this time, as you may risk having bad credit in the long run.
Michael writes for Loan Vision which provides information on loans for debt consolidation or any other purpose.