Living On Credit? You’re Not Alone!
By Jay Fleischman, New York Consumer Attorney on Nov 10, 2007 in Credit Cards
Demos has published a new report titled “Borrowing to Make Ends Meet: the Rapid Growth of Credit Card Debt in America” that confirm what many have known for years - that American families are relying more and more on credit cards to bridge the gaps created by stagnant wages and higher costs of living. As a result, credit card balances have grown dramatically since 1989.
The report details trends in sky-rocketing credit card debt, and also provides detailed data based on age, race and income demographics.
As of 2004, when the most recent Survey of Consumer Finances was conducted by the Federal Reserve, three out of every four American households had a credit card. The average debt among households with balances is $5,219. In total, American cardholders owe a staggering $876 billion on their credit cards.
The report also reviews the ways that credit cards exacerbate the financial distress many households now feel by trapping cardholders in a cycle of debt.
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