Saturday, September 13, 2014

THE DEBT TRAP

How Many Americans Have Unpaid Debts?



More than 35% of Americans have unpaid debts that have been turned over to debt collectors, according to a 2014 study by the Urban Institute. Most of these debts are from credit cards or hospital bills, but also include student loans, auto loans, and mortgages, which account for nearly $11.4 trillion USD in total American consumer debt. Based on records from September 2013, the average debt turned over to collection agencies was reported at $5,178 USD.
More about debt:
  • American households average over $15,000 USD in credit card debt.

  • More credit card companies are offering rewards cards, where cardholders earn points for using their cards and in turn get to use those points for rewards or cash back deals. However, rewards cards average an interest rate of 17.83% which is higher than non-rewards cards that average 15.48%.

  • Between 2009 and 2011, 7.6 million American homes went into foreclosure.