Americans Have Staggering Amounts Of Debt; It Only Stands To Get Worse

Main Article Categories

"Personal Finance" Article
Article Directory Home

Americans Have Staggering Amounts Of Debt; It Only Stands To Get Worse By Expert Author:
View Summary \| Submitted: 2006-01-27 \| Word Count: 479 words \| Views: 73 view(s)

If you're like most Americans, you owe a lot of money to a lot of people. In years past, credit was hard to obtain, and if you needed cash, you had to go to the bank and try to obtain a personal loan. That may or may not have been possible, depending on whether you knew your banker well or not.

Today, things are different. Thanks to credit scoring and automated tracking of spending habits, creditors are willing to lend money and lend it both quickly and often. And Americans have jumped on the bandwagon in record numbers to incur debt in every way possible.

We owe money on credit cards. Lots of it. The average US household has NINETEEN different credit cards and a total outstanding average balance of just under $10,000. That amount has more than doubled in the last decade, far outstripping increases in salary. What possible reason could anyone have for needing nineteen credit cards?

More often than not, these cards include more than one of a given type, such as multiple Visa or Mastercard accounts, for example. What happens when we own so many cards? We fail to pay our balances. In the last quarter, credit card delinquencies reached an all-time high, with nearly 5% of all customers missing payments.

We're buying more expensive homes than ever, but we're not investing more in them. Many, if not most, buyers are now taking out risky loans that require little payment of principal, such as Option ARM loans or interest only loans. We're not buying more house; we're just buying more debt. What's the result of this? Foreclosure rates are beginning to skyrocket, as buyers realize that they have signed on to more house than they can afford.

We're spending it on cars. The auto industry will sell more than twenty million cars this year, a high not achieved in nearly 20 years. And the average car loan now exceeds five years' duration, with many running seven or eight years. When was the last time you or anyone you know took out a three year car loan?

The bottom line - As a nation, we're up to our eyeballs in debt. We owe too much on credit cards, too much on our houses and too much on our cars. And it's catching up. As the deadline for the new bankruptcy law approached, record numbers of people were filing for bankruptcy and attorneys reported that they were actually having to turn down business due to the incredible volume of calls.

When attorneys are so busy that they can't take a call from a bankrupt consumer, we've got a problem. We could be on the verge of a recession, or even a full-fledged depression if the housing market collapses.
What to do? We've got to start saving money again. Now.

About the Author/Author Bio

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com

Article Source:

Article Tags: finance, personal finance, debt, debt consolidation, finance, family, home, mortgage, real estate, marketing, credit card debt, parenting, home, living

This Article has been viewed 73 times.

Comments on this Article

More "Personal Finance" Related Articles

Listed below are more articles related to the above article from the "Personal Finance" article category.

People interested in the above article "Americans Have Staggering Amounts Of Debt; It Only Stands To Get Worse" are also interested in the related articles listed below:

Financial Difficulties Facing Seniors

Approaching the age of 60 should be one of the most exciting times of your life. You can finally stop working all the time and begin spending your time doing the things you’ve been waiting to do for the last 20 to 30 years.
Traveling, buying a cottage, getting that little red Ferrari you always wanted...sounds pretty much perfect, right? Not really.

3 Tips for Retirement Saving Success!

Worried about saving for your retirement? Make sure you hit your retirement goals with our 3 simple tips for retirement saving success. Things you never knew about finances and expenses that can truly affect your saving plans are also discussed.

Van Finance: Hassle Free Finance To Purchase Van Of Your Choice

Vans are ideal for any commercial purpose and sure that is why they come with a price. Now, the advantage of having a van of your own is immense, as it enables you to save a lot of money, which you might have spent on hiring transportation. Further it also acts like an asset and can be useful for future purposes. So, if you are trying to buy one and do not have the necessary finance, then consider applying for van finance.

Debt Advice on Store Card Repayments

If you’ve run up huge debts on store cards, you’re not alone. Every year in the UK, thousands of people seek debt advice to deal with the financial problems arising from this method of credit.

Upsiding the Downturn

By any standards, we look to be in a bit of economic mess right now and in many ways the future looks bleak and uncertain. If you are in danger of losing your home or your job, you know this only too well. If you are in a predicament like this, I don't doubt that you are feeling fearful, angry and worried about your future. Who wouldn't be?

Which Debt Can Be Settled?

We receive many questions regarding debt settlement and specially inquiries as to whether certain debts can be settled or not. This is an important issue as not all debts can be settled with regular debt repair agencies. And thus, prior to hiring the services of such agencies you need to make sure that your particular debts are suitable for settlement or else you would be just wasting money.

Get Your Finances In Order For The Coming Year

This year has been a difficult and turbulent one for most people in terms of finances, and in a year that has seen some unprecedented incidents take place in the financial world, many households have suffered as a result of the repercussions. With the year nearly over and 2009 almost upon us it is a good idea for households to make a start on reviewing their finances in order to get them streamlined and sorted out in time for the new year. Early action can take much of the stress out of sorting your finances, and by doing this you could look forward to a less financially strained year in 2009.

Print Article

Comment on Article

Favorite Article

Email to Friend

Republish Article

Article Directory Home

Finance

Personal Finance

Can't find what you're looking for? Try Google Search!

(Search in 26 languages: English, Spanish, French, Japanese, Arabic, Italian, German,
Chinese Simplified, Chinese Traditional, Dutch, Korean, Portuguese, Russian, Greek, Serbian
Slovak, Hebrew, Swedish, Romanian, Polish, Norwegian, Finnish, Danish, Czech, Croatian, Bulgarian)

(We serve worldwide - Locations updated as at Tuesday, 02 December 2008 06:18 am , Singapore)

United States of America, USA . United Kingdom, UK (England, Scotland, Wales, Northern Ireland) . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bonaire . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam . Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Channel Islands . Chile . China . Christmas Island . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Curacao . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Gaza . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea-Bissau . Guyana . Haiti . Hawaiian Islands . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Johnston Atoll . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Leeward Islands . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Midway Islands . Moldova . Monaco . Mongolia . Montserrat . Morocco . Mosquito Coast . Mozambique . Myanmar (Burma) . Namibia . Nauru . Navassa Island . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paracel Islands . Paraguay . Peru . Philippines . Pitcairn Islands . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Ryukyu Islands . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tom?& Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tonga . Transkei . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Turks and Caicos Islands . Tuvalu . US Virgin Islands . Uganda . Ukraine . United Arab Emirates . Upper Volta . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Wake Island . Windward Islands . Yemen . Yugoslavia . Zaire . Zambia . Zimbabwe

Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Template Design by Internet Marketing Singapore | Internet Marketing | Singapore Classified