Average American households owe more on their credit cards than they earn in the entire year. Many people can no longer pay off their credit cards at the end of the month. They fall deeper into credit card Debt and get even deeper in trouble. Average family credit cards debt is now above $ 24,000.
The top three American credit cards with the highest average household credit card debt is: Wachovia, Bank of America and Citibank. American consumers owe the most on these three banks combined. Americans owe billions upon billions of dollars on credit cards that have been issued by American financial institutions. It would be very surprising to discover just how many American families are living paycheck to paycheck.
There is a direct correlation between how much an American family makes and how much they spend. This means that as a nation we are getting further into debt. The average household credit card debt is directly related to how much money the average American household has to spend. Americans as a whole are spending more than ever before.
Average credit card debts have increased more than any other single cause over the last five years. The average household credit card debt has reached an all time high. Credit card companies are reporting record high interest rates because Americans just can not keep up with their monthly payments. In fact, they just cannot make it.
One of the largest credit reporting agencies in the United States, Experian, recently reported that the average household debt has risen for the third straight year. For those who have lived in the same house for less than five years, the debt has actually doubled since the last measurement. Many consumers are in financial turmoil and may not be aware of this news. So many have chosen to ignore the news or choose to believe it will “never happen to them”.
Two things have been reported by the Federal Trade Commission that can lead to the rise of credit debt. First, new federal regulations have been put into place that force consumers to shop for new terms before they can change the terms of their existing credit cards. If you don’t do this your interest rate will increase dramatically. Second, the FTC is now mandating that all fees and charges be clearly listed and all fees and charges paid at the time of the transaction. If there are hidden fees or charges that aren’t disclosed consumers are required by law to pay these amounts before the transaction closes.
There are three consumer credit reporting bureaus that provide information to the FFC. The three bureaus are Equifax, Experian and Trans Union. In order to stay on top of your credit score the average household can check their credit report at least once a year for free. The FFC has also mandated that all companies must provide accurate and up to date information for the purpose of informing consumers of average household credit card debt statistics.
In conclusion, consumers in the United States are suffering with massive debt due to the inability to pay their credit cards. This problem is felt acutely by younger generations due to the recent economic situation. This generation grew up during the credit boom and now must deal with massive debt repayments. As a result the FFC has mandated that all companies must provide accurate information and provide an opportunity for a debt settlement. This is the best way to start repairing the damage caused due to massive debt repayments and the fastest way to regain your credit score.