Debt Disease Facts
Debt Disease is easy to catch.
- The average American carries as many as nine different credit cards.
- College students are one of the credit card industry's fastest-growing markets. It is estimated that 78% of college students have at least one credit card.
- 41% of graduating seniors had credit card debt, with the average balance just over $3,000.
- The biggest banks already control the majority of the credit cards issued in the United States, and Bank of America–the biggest bank of all–controls 1 in 5 credit cards and 1/5 of the credit card debt in the country.
- 82% of Americans believe household debt is a serious problem and the general public is more concerned about falling into debt than about being the victim of a terrorist attack or a natural disaster.
Once you have Debt Disease, it's really tough to cure.
- In 2007, Americans held $940 billion in credit card debt. The average credit card balance in the United States is $5,219 and the average credit card interest rate is 18.9%. Paying just the minimum amount due every month on such a credit card would take the cardholder 13 years to pay off the balance.
- Last year, Americans paid $18.1 billion in credit card fees, up from $17.1 billion a year ago. Robert Hammer, CEO of R.K. Hammer, which is one of the leading credit card industry experts, predicts that fees could go up 6% this year.
- Many young adults have been forced by long–term financial problems to file for bankruptcy. In the years 1991–1999, there was a 50% increase in bankruptcy filings for people under 25.
- A typical credit card purchase ends up costing 112% more than if cash were used.
Just because your parents have it–doesn't mean you have to get it, too.
- The link between bankruptcy and credit card debt is clear. In 2000, the Department of Justice conducted a study that examined the link between bankruptcy filings and credit card debt. The study of 1,000 bankruptcy cases found that 50.4% had over $10,000 in credit card debt.
- Each year, more than one million people receive counseling and educational services from National Foundation for Credit Counseling member agencies due to financial problems such as overwhelming credit card and other household debt.
- You don't have to be a statistic. Keep your credit card in your pocket and you can avoid Debt Disease. Find out more
Avoid the "D": Keep It In Your Pocket
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