old debt and getting you to pay under new circumstances.
For those struggling with or ignoring this type of debt, Gail Cunningham, a vice president of Business Relations with the Consumer Credit Counseling Service of Greater Dallas (www.cccs.net),has this warning: “If you are living on the financial edge, any hiccup that comes along is likely to push you over to where you cannot pay your debt. As people get deeper into debt, creditors will use whatever means at their disposal to collect.” Therefore, communicate with your creditors to resolve old debts as soon as possible and always read the fine print.
A Window Into Credit Card Debt
There are an estimated 115 million Americans who carry credit card debt, and chances are you are one of them. Debt can be a great source of depression and frustration, but you have to remember that you are not alone.
- On average, consumers have 13 credit obligations, nine of which are likely credit cards.
- There is an estimated $2.16 billion in outstanding consumer credit.
- Each household has an average of $9,000 in credit card debt.
- On average, consumers have access to $19,000 on all their credit cards combined.
- An estimated 13.75% of one’s income is used toward paying debt.
(Sources: MyFico, CardWeb.com Inc., Consumer Reports, the Federal Reserve)