The numbers related to personal debt burdens and delinquency rates are rising rapidly with each passing year. With more people digging themselves deeper into debt, the problem has become almost an epidemic. What is even more shocking is that few people actually seek debt relief solutions until it is nearly too late.
The Numbers Don’t Lie
It is reported that the average credit card debt per household is over $5,000 and expected to rise to around $7,000 by the end of 2012. Over 80 percent of Americans own a credit card, over half of those carrying three or more active debt balances at a time. The percentage of Americans in debt default has climbed to a staggering 25 percent, with nearly 10 percent of those more than 60 days behind or habitual offenders. It is estimated that the average family allocates 30 or more percent of their expendable income towards debt repayment each month. As the number of Americans sinking further into debt continue to rise, why aren’t more people seeking help?
It depends on how you view “help”. Despite an increase in bankruptcy filings in recent years, many people simply wait until their options are limited before ever seeking help with their debts. Credit counseling courses and companies are plentiful, yet their offices remain proportionally low in attendance. Only 2 million Americans reportedly sought some form of credit negotiations or other debt relief option last year, which is a drop in the bucket compared to the number of people who could have benefited from such help.