Presently, credit cards are offering more than money and credit. Credit cards opened a new horizon to people. Social status is that new factor that is revolutionizing the economy. Today people dont need to carry cash in order to purchase something. Now you can easily withdraw money anywhere at all times. However, not everything is perfect in credit card realm, People who lack the ability to administer there spending habits or simply are undergoing a difficult situation will fall in this golden trap, and getting out will not be easy.
The excessive usage of credit cards is the latest trend this past decade. As a result, debt rates rocketed. While bank transactions have increased 16% the past ten years, the gross dollar volume has only increased 2.5 times since 1994. This means that a normal transaction, regardless what type of credit card used such as, VISA, MasterCard or American Express is near $105 while it was $83 in 1993 ? 1994.
December 23, 2004 was registered as the day in which credit cards was used the most in the history of the United States. An average of $8 million dollars per minute was spent, nearly $14 billion dollars.
The average credit card debt of an average person in the United States oscillates between $8400 and $8650.
A statistical study showed that the percentage of people holding credit cards grew by a 75%. In other words, it increased from 82 million to 144 millions in only 4 years.
The largest loaner for students, Nellie Mae, said that $2,400 was the average credit card debt a student had, before graduation. After graduation, that amount reaches the $6000 and only 54 percent of students pay off their debt every month.
Last year nearly 1.5 million credit card holders filed up for bankruptcy and there are just about 1.3 million credit cards in North America. Although credit cards have given us lots of advantages, it is also important to realize that the misuse of this plastic money resource can become the damaging to an individuals financial life.
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Debbie White is a contributing writer to
http://www.curadebt.com and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Business Debt Information and Debt Help Consultation, call toll-free 1-877-850-3328.
