Consumer Debt

by Joe on February 23, 2010

I was looking over some debt statistics and i was surprised at what i found.

  • Over 40% of US families spend more than they earn.
  • Only 2% of homes in America are paid for.
  • Nearly 1 in every 35 households in the United States will file for bankruptcy.
  • 96%of all Americans will be financially dependent on the government, family, or charity at retirement.
  • Over 1.5 trillion dollars worth of purchases annually is made using credit cards.
  • Americans carry, on average, $8400 in credit card debt.
  • The average U.S household pays $950 in interest each year.
  • More than four out of ten young consumers between the ages of 18 and 21 who surf the Web now own a credit card, and 65% of these young consumers used the Web to apply for a credit card.
  • In September 2008 credit card debt hit an all-time high of $975 billion

Credit cards debt distribution statistics around the U.S as of August 2009.

  • Highest state average credit card debt:
    • Alaska at $7,665
    • Tennessee at $7,054
    • Nevada at $6,517.
  • Lowest state average credit card debt:
    • Iowa at $4,247
    • North Dakota at $4,417
    • South Dakota at $4,633
  • The steepest increases in average credit card debt over the previous quarter:
    • District of Columbia +6.3%
    • Tennessee +2.7%
    • Alaska +2.5%
  • The largest drop in average credit card debt over the previous quarter:
    • Hawaii -2.7%
    • Utah -2.6%
    • Nevada -2.4%

This leaves you to think about this question – Are we out of control on personal spending in America?

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{ 3 comments… read them below or add one }

Lakita (PFJourney) February 23, 2010 at 11:39 am

These stats are scary! Yes, I would say personal spending is out of control!


Alcoholic Millionaire February 23, 2010 at 4:11 pm

Personal spending is out of control. We are the most marketed to generation of humans in the history of mankind. Period. From birth large banks/ corporations have spoon fed us to believe that we “need” credit to be successful, and that debt is a “tool” . It takes serious discipline and self control to overcome this influence.
I was raised a Christian, but recently the wisdom of handling finances in a biblical way has been made crystal clear. I don’t know why but I always seemed to ignore the scripture at Romans 15:8 – “Do not you people be owing anybody a single thing, accept to love one another. “


Joe February 23, 2010 at 10:47 pm

@Lakita , @ alcoholic millionaire – I Totally agree with you our generation is getting out of control. I have to wonder how our grandchildren will say of us.


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