Growing trends of personal debts of average American is a concern for most people these days. Knowing credit card debt facts can help them manage their financial affairs better.
Personal debt of average American is growing at a staggering rate and with it is also growing the collection of credit card fees and finance charges. Official statistics indicate that an amount of $85 billion was collected in terms of fees and $110 billion in terms of finance charges in the year 2011 alone.
Use of Credit Cards
Some of the interesting credit card debt facts are as follows.
The Debt Abyss
Other credit card debt facts that calls for general attention is that they have led the average consumer into a debt abyss of considerable depth and the repercussion on financial lives of the consumers is massive. A charge of $1,000 will take around 22 years to pay back and together with interest the amount repayable will be a staggering $3,300 if only the 2% minimum payments are made.
Credit Cards – Past and Present
First credit cards those appeared in the market back in 1900 were only merchant specific and used in hotels and restaurants mainly. However, the credit card in the modern sense of the terminology came into existence in the year 1950 when Ralph Schneider and Frank X. McNamara started one for the Diners club. Interest rate on the card expenses were 7% and finance charge were $3 per card holder per annum. Chase and Bank of America came up with VISA credit cards in 1958 and the cards became extremely popular with the magnetic strips added during the 1970s.
Other Interesting Facts
Some other interesting credit card debt facts are as follows.
Today, the average household credit card debt in United States is around $8,400.
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