New Year Resolutions: Some Startling Statistics
About American Consumers

Before you whip out your credit card, stop and think. America
is often called a consumer society, and it's true. We're also a
nation of credit card debt, which is evidenced by some of these
startling facts.

We all know that acquiring overwhelming debt is stressful from
a financial standpoint. However, it might surprise you to know
that more than 70 percent of divorces in America are brought
about due to financial problems.

One thing Americans are NOT is savers. We simply don't put away
enough money to protect us in the case of financial emergency.
In fact, the average American consumer carries so much debt
load that they're a mere three paychecks away from having to
declare bankruptcy.

Financial emergencies arise all the time, of course, but
Americans continue to build up credit card debt, without
thought of the possible consequences. That's why nearly
1,500,000 people in the United States are forced to file for
bankruptcy every year. Another 1,500,000 people will turn to
the various consumer credit counseling organizations for help
in order to try to avert bankruptcy. That's a staggering
number, but it's dwarfed in comparison to the 37,000,000 people
who endeavor to work out plans with their creditors on their
own. That's 40 million people a year who are in enough
financial trouble to take drastic action!

How do people get in such horrible financial condition? One way
is through the use of credit cards. They may be convenient, but
they certainly make consumers pay more for the merchandise they
buy. For instance, a person paying for a purchase with a credit
card will pay, on average, more than 130 percent for that item
than if they had simply paid cash for it.

A large majority of consumer only pay the minimum payment on
their charge cards, but those payments are generally 90 percent
interest, with only 10 percent going toward reducing the
principal. A staggering 71% of all credit card holders pay only
the minimum payment, and they do it without a thought to the
consequences. If they can easily afford the monthly payment,
they just keep paying it, without realizing how expensive their
purchases ultimately have become.

If you are one of the millions of Americans who are only paying
the minimum amount on your charge cards, start paying MORE each
month. Even if it's only a little more. Reducing the principal
balance will shorten your overall payment schedule--sometimes
by hundreds or even thousands of dollars.

The statistics are mind-boggling, and with interest rates
headed even higher, you must educate yourself on the wise use
of credit, pay cash whenever possible, and try to live within
your means, even if it means doing without some things. It's
the only way you can avoid becoming one of those sad financial
statistics yourself. Include monitoring your credit card use in
your New Year's Resolutions.

Copyright (c) Jeanette J. Fisher


About The Author: FREE Credit Help Teleseminar. Get expert
advice on building your credit from credit and real estate
college instructor Jeanette Fisher
(http://www.jeanettefisher.com/ ). More free credit card debt
help and FREE Credit Tips ebook http://worryfreecredit.com