Credit Card Debt in America Higher Than Ever
America's average family credit card debt is growing every year. It used to be that individuals had school loans from their college days and families had mortgages to pay on their houses, but nowadays, the profile is changing. Recently, it's the credit card debt that is entering the astronomical ranges. Families are buying, more and more often, outside of their price range when it comes to buying a house, and then making up the difference by charging more on their credit cards.
This practice is becoming more and more common as Americans think less and less negatively about having large amounts of credit card debt. It is just not seen as a problem to carry $10,000 debit on one's credit card. Some people are shocked by the fact that many Americans are doing this, because, face it, the interest rates are not low! However, it seems that there are things that are more important. People start choosing things based on who does and doesn't take credit cards (like privately run preschools). Add to it gas and groceries, and plenty of other everyday necessities simply get added to the credit card debt.
....And The Future Holds?
Many people worry that America's credit card habits will lead the American economy into very serious trouble in the future. Not being economists, most Americans are indifferent about the amount of credit card debt that America has as whole. Of course, each family would like to get rid of some of their existing credit card debt; however, getting people to think about the American economy or even the world economy, as a whole, is another question altogether. As long as each family's debt remains as high as it is, probably that sentiment is not on the brink of changing.
The other important question for the future is whether or not the amount of credit card debt that Americans currently have is going to continue to go up as steadily as it has in the recent past? If the current average is the highest it will go, some people see some relief in the near future. On the other hand, some think that the amount now is already high that people are simply getting careless, and that the amount is simply going to go higher. The future could be interesting for economists, but for individuals, it looks bleak.
This practice is becoming more and more common as Americans think less and less negatively about having large amounts of credit card debt. It is just not seen as a problem to carry $10,000 debit on one's credit card. Some people are shocked by the fact that many Americans are doing this, because, face it, the interest rates are not low! However, it seems that there are things that are more important. People start choosing things based on who does and doesn't take credit cards (like privately run preschools). Add to it gas and groceries, and plenty of other everyday necessities simply get added to the credit card debt.
....And The Future Holds?
Many people worry that America's credit card habits will lead the American economy into very serious trouble in the future. Not being economists, most Americans are indifferent about the amount of credit card debt that America has as whole. Of course, each family would like to get rid of some of their existing credit card debt; however, getting people to think about the American economy or even the world economy, as a whole, is another question altogether. As long as each family's debt remains as high as it is, probably that sentiment is not on the brink of changing.
The other important question for the future is whether or not the amount of credit card debt that Americans currently have is going to continue to go up as steadily as it has in the recent past? If the current average is the highest it will go, some people see some relief in the near future. On the other hand, some think that the amount now is already high that people are simply getting careless, and that the amount is simply going to go higher. The future could be interesting for economists, but for individuals, it looks bleak.