Average Family Credit Card Debt

Does anyone know what the average debt, on credit cards are per family? Do you think that the interest rates are too inflated, making it harder to pay them off?

Of course CC companies and banks and mortgage companies make it too easy to get credit. That's how the make money! And, the worse your credit, the more money they make!

So, what do you do about it? Educate yourself! That's the only way. There are few schools and colleges that educate people on personal finance, so it's up to YOU to educate yourself!

How do you do that? Go to www.GoldenRocFinacial.com or Amazon.com and get "Persona Finance 101 - A Beginner's Guide." That book is used by Brigham-Young University and charter schools to teach young adults -- 13 - 28 years old (and parents of young adults) the basics or personal finance and a bit about investing. In addition, the book covers the rules for credit and bank accounts, how to avoid getting into trouble with debt, and what to do if/when you get into trouble with credit.

Educate yourself, and think outside the box that society and advertisers would like you in...

2007-04-30 15:26:43 by golfnuttoday

In "Secret History of the Credit Card," FRONTLINE® and The New York Times join forces to investigate an industry few Americans fully ...

I travel alot for business and my company shut down two months ago therefore i am job less. My wife handles all of the bills pays such as house payment and such. At work i did manage to have them with hold 200 dollars every two weeks to put in a savings account. Over the years that is at 37k, I saving it for emergencies. When I lost my job I went over bills with my wife, with her salary and my unemployement we will be just fine. Now last week she came to me and told me she is worried some of the bills will not get paid I asked why I need to see this. She then put her head down and said there is something i should tell you I have 600 in cc payments, my face turned white. So then she brought me the statements all had APR averaging 15%. Here is the thing why she took on that much debt, her brother Charles lost his job and his wife just got out of rehab. They have 2 girls that are our god children. They live 3 hours away they lost there home/car too this year and where homeless. Well my wife got them a hotel to live in pd it all on credit at 49 per night 2 months 3400, food clothing another 3k and she bought them a car 4k, plus money for court fees to get him looking for work. so all and all 11k went to help her brother and family out. Well he and his wife where suppose to get jobs and start paying my wife back. My wife went down to where the hotel was they where gone, they took the hotels TV, bedding, pillows ect so my wife was stuck with another 1k in damages. She found out last week that they were headed to Phoniex area, that is well over 2,000 miles away. My wife dose not think that she will see them again and get her money back. My wife is begging me to find away to help her pay this down. I am so frustrated right now, If she would of asked me I could of told her that her brother Charles and sis in law Bridget would of done that. They both where, maybe still are Meth-Users thats what they do use people.

Well this is what you been saving the money for....emergencies. She obviously knew that you would not have approved of her behavior......that's only part of the reason here for the secrecy.
You have work to hard, and long...and with extremely good diligence,and concern for your future. These are not your debts....they are hers.....she created them, let her live with them....your concern is for your safe and secure life style....and her concern was for someone Else's........heck she didn't even consider herself in the equation. What you need to do here....is get a "dissolution of liability" do no more credit agreements with your wife as co-signer...if any of the credit cards are in your name.....dispute all charges with your card company.....explain to her what your intention where for saving the money you have.....and assure her that it not your intention to piss-off your savings on things created by her ignorance.....a car breaks down...ok............a tornado trashes the roof......ok.......a car is damaged in a auto accident.......ok; but this doesn't qualify. Now is the time for the man to step up to the plate, the fiscal and conservative, responsible one in the marriage, has to prevail here.

2009-08-02 09:57:24 by Johnny

Price: $22.95

I just wanted to get some advice on what would be the best place to put my money while I'm both paying down credit card debt and saving for a new car. I am currently driving a 1996 Toyota Camry with 173,000 miles in. The car still runs well, but with how old it is I'm worried I might be on the market for a new car fairly soon. I also have about $1300 in credit card debt split between 2 cards, with about $900 on the higher interest rate card (22% APR) and $400 on the lower interest rate card (17% APR).

I make about $2,000/month (after tax and 401K Contributions). Currently I put $250 in my savings account every month (with the intention of eventually using it on a down payment for a car) and use $150 to pay down my credit cards (I typically pay $130 on the high interest rate card and $20 on the lower interest rate card, eventually hoping to pay $150 on the lower rate card once the higher card is completely paid off). I try not to use my credit cards throughout the month, but sometimes I end up having to use the higher interest rate one in emergencies (but I intend to stop doing that).

I currently have $1500 in savings for my down payment. When I need to buy a car, I will be on the market for a used car that is $11000 or less. My credit is average but I will have a co-signer as I've never had a car loan before.

I'm basically wondering if there is a better way to do this. I know that my credit card debt needs to be paid down, but I don't want to risk not having any money in savings for a down payment and having my car die on me. I also don't want to have a hard time getting an auto loan because of my credit card debt. Plus, I know I'm just throwing money away on interest each month I carry a balance.

I'm also really worried about taking on the burden of an auto loan as I basically live paycheck to paycheck after bills, savings, and credit card payments. Once I have a car that I'm not worried about, I will probably have to ease up on how much money I put into savings each month in order to afford to auto loan (if my credit cards are not completely paid off yet).

Any advice is appreciated. I've discussed this issue with friends and family before and have heard arguments for both sides. Just wondering what strangers think.

Thanks!
Thanks for all the answers. To answer some questions: I make $33,000/ year but after Tax and 401 K Contributions my take home is about $2000/month (Plus 2 "Bonus Paychecks" of $1000 per year). The reason I am budgeting for an $11,000 used car instead of a cheaper one more has to do with the safety and life expectancy of the vehicle than aesthetics. If I buy a $2,500 car, I'll most likely need to start saving immediately for the car I'm going to buy when THAT one dies. A fairly late model used car will mostly likely have more life left in it, life that will extend beyond my auto loan (especially if I stick with Toyota...which I intend to).

I appreciate all the advice and I think I will begin paying more down on my credit card and easing up on the savings. I've heard of many Camry's getting up to 200k miles so if I can keep saving for that long, maybe I will be able to pay cash for my $11,000 car in a couple years (knock on wood!).

If you're paying your bills on time and are not at the max for your cards, your credit should be really good. Throw in a co-signer, and you should be able to get a car loan for under 10% easily. The link below can give you a range for your area.

That said, your choice is between reducing risk (having a decent down payment for a car that you might need) and reducing a known problem. Let's crunch some real numbers:

Eight months of continuing the current path:
Car savings: + $3,500
- 22% CC: Just paid off: 8 mo interest = $100ish(?); 130*8 = $1,040
- 17% CC: Still a balance: $240 + any interest - call it $10 to round things out.
NET: 3,250

Use current savings to pay off debt, then add $150/mo to savings. Eight months later:
Car savings: $200 + (8 * $400) = NET $3,400

So, in eight months, you'll have more in savings. Until then, you won't have as big a down payment for a car, but you'll have better credit (lower balance), and you won't be paying interest to someone else - you can keep it for yourself.

Also, you may have some options if your car dies - can you carpool or take public transit? If you can do that now, it will stretch out the life of the car.

Unless the car has immediate concerns, like a strange clunking noise, I'd pay off the credit cards.

Good luck on keeping up the savings - an emergency fund really makes me feel safer - I just wish I could get it from 2 months to 6, myself. You can get a feel for how much it will cost a month in the second link - 10K for 36 months @ 6% interest came out to $304/month, while 8K was $243. I hope your car lasts!

2009-11-03 09:40:11 by G

Particularly, a family member thinks I may have "too much" available credit.

I have 6 credit cards. An American Express Clear, a Bank of America American Express, Chase Visa, Discover More, Bank of America Platinum Plus, Citi Platinum Mastercard.

These total $68,200 worth of available credit. However, I only utilize about $4,000 of this (which is spread out over 2 cards, even). I'm paying that $4k down so that I can have no credit card debt within about 3 months.

Is it 'bad' for me to have that much available credit? I've had some of these cards for years, and some happened to give me some really crazy limits (such as that American Express Clear that has $25k available credit). Will this much available credit hurt my credit score or prevent me from getting my own house in like 2-3 years or so? My credit score (checked recently) is about 760 as an average of the three credit bureau scores.

So, yes or no...does this much available credit cause me any problems down the road with something like a mortgage?
And...to the people who have a thumbs down, it's not me. lol I let other people decide which is and isn't the "right" answer. :-)

No, as long as your using it like you say you are and it is actually probably helping you because it shows that you can handle having the available credit without going crazy and your credit score speaks for its self.

2009-05-12 18:10:36 by Anonymous

I am seeking some advice regarding what to do in new circumstances I am in, and was not sure where to ask.

In 2006 (at 18) I enrolled on a course reading BSc Politics with Criminology at the University of Salford. I am from Cornwall so Salford was a long way from home and I really failed to get to grips with student life, through entirely my own fault I dug deeper and deeper into two overdrafts and over time two credit cards too.

I was a very distracted student in Salford and failed my first year twice. During the summer following the second year failure I re-thought my plans and also met my girlfriend. My girlfriend was from Plymouth, and with Plymouth being just a short distance from my family in Cornwall I decided I could make a fresh start, concentrate and actually achieve what I knew I could in University. I enrolled in a course studying International Relations with Politics, focusing more on my interests. My new student year started fine with me gaining top marks on my first marked assignment. Outside of University I had found two part time jobs as well.

Things went wrong when I found out that I had entirely misunderstood my moving to Plymouth University, as I thought it would be classed as a transfer but the Student Finance people said it was starting again meaning I had been to University before, leaving me only eligible for 2 years funding, the first year I would have to pay myself.

The first year course fee was £3,150 and even though I tried I could not raise that amount of money and subsequently have been de-registered from university. It has left me very frustrated at my stupidity when I was younger and how it has disabled me so much now.

Currently I have a total of around £2,700 in overdrafts, nearly £1000 on a credit card(managed by payments averaging £20p/m) and a previous credit card debt of £251 being dealt with by Wescott Credit Services. Obviously totaling nearly £4,000. I still have my part time jobs, but one is just a bar job for Plymouth Argyle(meaning only home matches) and one is an agency job usually providing me with just one day a week.

I am stuck with everything even living arrangements as I do not currently have a permanent address, my parents are in Cornwall with no room themselves, and my girlfriends family, who I would opt to stay with, (allowing me to stay with her and in Plymouth) would allow me to stay rent free but currently rely on benefits that would may be complicated by my presence(rent or not). Then of course I am stuck with how to approach the debt issue.

I have heard of a Debt Relief Order, I am unsure on the details of this and whether or not it would be a viable option.

I am sorry for the lengthy question, I thought the more information might be better.

Any help you or anyone you could inform me of passing this onto would be greatly appreciated.

Also, since i originally wrote that, we have found out my girlfriend is pregnant, which sort of complicates matters :-/

Be thankful to your girlfriend's family, treat them extra nice, do whatever you must to bring in the money, and resolve that when you graduate and you're doing well, you'll return their generosity. I know it's hard, I'm not fairing much better, but these days, it may be the best you can do. I'm praying for you, brother.

2009-05-26 04:52:25 by kjchronic