A recent review of surveys show a clear pattern in our spending habits. The information revealed not only makes us think twice about the importance of getting out of debt, but really shows us that it is no surprise the personal debt burden has bit epic highs in recent years. Of course, the economy and job market hasn’t helped our financial situation, but most of us could get out of debt with the help of a debt management plan or entering credit negotiations.
What The Numbers Show
The average American family carries four or more active credit cards with thousands of dollars in balances on each. Most of us are carrying an average of $7,800 in credit card debt, which attributes to the total personal debt burden of $2.4 trillion. Nearly $50 billion worth of fast food is charged to credit cards each year, a frivolous spending habit that should quickly be eliminated. Further, this last bit demonstrates how easily falling into debt can be when we don’t prioritize our credit purchases.
One third of our personal debt burdens are revolving debt accounts such as credit cards, while the other two thirds comes from secured debts such as mortgages and car loans. Although this may seem like a legitimate and necessary ratio, the true values of such a figure can paint a different picture. Meaning nearly $100,000 of a total of $300,000 in debt would be attributable to revolving accounts. Further, of the 312 million residents of the United States accumulating such massive debt loads, only 2 million seek debt relief assistance each year.