Debt Statistics

Here are a few debt statistics I put together from the cardweb.com website. Just a little food for thought.

• There are 1.3 billion plastic cards in use in the United States. When I say plastic cards, I mean credit cards, debit cards and store credit cards. The average American household has 13 of these cards.
• In 1999, in purchases alone, Americans added 1.1 trillion dollars to their credit cards.
• Credit cardholders that carry a balance, average about $5,800 in debt. If they make only the minimum payment, they will be paying on those cards for 30 years and will pay an extra $15,000 in interest.
• In the first quarter of 2000 more than 300,000 people filed bankruptcy. This is according to the American Bankruptcy Institute.
• We tend to purchase 112% higher when we use our credit cards than when we are using cash.
• Over 40% of Americans spend more than they earn and 96% of all American will retire dependent on either the government, their family or charity.

Some of these statistics are real eye-openers and they give you something to think about.

Would you like more information on debt? Visit debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.

The Key to Achieving Financial Goals

I believe one of the biggest keys to achieving financial goals is putting them in writing. It is easier to know where you want to go if you can see where you are. So, start by putting your financial goals down in black and white. If you have a partner, they also need to be involved in this process. It will not work if only one of you does it.

Follow these four steps to see where you and where you want to be financially:

• Take a financial inventory. List what you own and what debt you have. Balance your checkbook and get a copy of your credit report. Evaluate your spending and saving patterns. Examine your feelings and thoughts about money and finally list your financial goals.
• If you have a partner, discuss everything you have written down in the previous step with them. Be open minded and nonjudgmental. Commit to taking the time track your spending and to develop a financial plan.
• Be willing to be flexible and compromise on issues that you and your partner may not agree on. Come to decision that will work for both parties.
• Be disciplined about following the agreed upon financial plan. If the plan needs adjusting, make those decisions together.

Following these steps will not only make your financial future stronger, it will strengthen you relationship.

Marjorie Salada is the owner of debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.

College Students and Credit Cards

The best thing you can do for your child as you send them off to college is to educate them about credit and debt. We try to give our kids all the tools they will need to live a prosperous and healthy life, but I believe many teenagers go out into the world not fully understanding how credit and debt works.

Credit card companies do not make it easy or I guess I should say they make it too easy. Credit card companies can be found just about anywhere giving away free gifts in exchange for a completed credit card application. The stores like to give the ten percent discount in exchange for your completed credit card application.

With the incentives that these companies offer, these applications are very tempting to a person that is just starting to make their own decisions. Having worked in the collection industry, I have seen many young people with charged off credit card accounts. It just never occurred to them that when they put down that piece of plastic and walked out of the store with those $200 jeans that 30 days later somebody would want money from them.

It is important that your child understands that with credit comes responsibility and they need to know how that works. Do your child a favor and educate them on how credit and debt works. They are going to be faced with a lot more temptation than we were and they deserve a fighting chance. They deserve to graduate college and go into the world with out an overwhelming amount of credit card debt. Many of them will have student loans to pay off. The last thing they need is to be paying for jeans they bought four years ago.

Marjorie Salada is the owner of debtmanagement1.com, a website that contains information on debt consolidation, debt settlement, debt counseling and how to manage credit card debt.