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STILL DENYING THERE IS A CONSUMER DEBT CRISIS?
TAKE A LOOK AT THESE STATISTICS- Total credit balance from 1996 to 2000 increased an average of nearly 9% per year to a total of $633,000,000,000. www.federalreserve.gov/releases/g19/
- Americans today have over 1,000,000,000 credit cards. Family Money Magazine, July 2000, "Zero Balance - Getting the Credit Monkey Off Your Back"
- USA Today reports that, of the 23 greatest fears identified by Americans today, #3 was inadequate Social Security, and #4 was not enough money for retirement.
- American Express Financial Services reports that Social Security will account for only 27% of the average retirees income.
- A survey by the Consumer Bankers Association found that, within a year, 70% of the people who had shifted credit card balances to home equity, were again running up credit card debt.
- Citibank's Platinum Select's rate can soar to prime plus 12.9% after a single late payment to Citibank or any other creditor.
- Researchers at Sanford C. Bernstein, a securities firm, points out that household debt in the 1990's grew at a rate 2% a year faster than their income.
- According to the National Board of Realtors the average homeowner stays in their home for 7.1 years (1993 statistics). With an 8% mortgage, they will sell their home still owing over 90% on their mortgage.
- Only 2% of American homes are paid for.
- For the period ending June 30, 1996, personal bankruptcies a 12-month period exceeded ONE MILLION for the first time ever.
- In 1997, there were more than four million home equity loans, totaling $268 billion, nearly 50 percent higher than in 1992, just five years earlier". www.nhema.org/Equity/washingtonupdate.htm
- Making the minimum payment on a $4,800 balance at the average interest rate of 17%, it would take you 39 years and 7 months to pay off. You would pay $10,818.63 in interest alone, and a total of $15,619 for the privilege of charging the $4,800.
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