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Archive for January 31st, 2010

Many sources, including the government, the media, and even bank officials, have claimed that the American people have a lot of credit card debt. There are many rumors going around saying that Americans owe thousands of dollars each in credit card debt. They usually will give statistics with their claims to help back the claims up. However the truth about Americans credit card debt is often skewed and hidden. The only way to see the truth is to break down the numbers.

You may have heard the statistic that the average American has more than $8,000 in credit card debt. While this statistic is true, it only holds true if you’re considering every American in the country. Most statistics don’t include every American, only those that have credit cards. Thus our image of the average American family with a house and kids is skewed as not all of these “average” Americans have credit card debt. The problem is when they mention the word average in their statistics we are lead to believe that it’s this type of family that we often think of when in fact they actually use the mean of the people who have credit card debt.

The truth is that most American households don’t have debt. In fact only about 1 in 20 American households have $8,000 or more in debt. This means that the majority of American families have paid off their credit cards or don’t have credit cards. Out of the remaining households, most of them only owe $2,000 or less. An average can’t tell you how much the average American owes as it’s a skewed number.

The reason that the truth about credit card debt is hidden is because of how they got the $8,000 number. They got it by taking $750 billion, which is all the outstanding credit card debt, and divided it by 84 million, which is the number of American households that have credit cards. While this may seem reasonable at first glance it’s just a myth when you’re talking about the average American household.

An astounding 23.8% of American households don’t even have credit cards! These households weren’t included in the calculation since they don’t have credit cards. Another 31.2% of Americans pay off their cards as soon as they get the bill. This totals to an astounding 55% of American households that have no credit card debt.

Out of the 45% 29% have $1,000 or more in credit card debt, 21% of households owe $2000 or more, 4% owe $10,000 or more, and 1% owe $21,000 or more. These numbers show that 26% of the American people carry all of the debt that is owed for debt that is $2,000 or more. American households owe very little to credit card companies. Most of the households that due have credit card debt have less than $1,000. The truth is that most of the American people are not in credit card debt and nowhere near the rumored numbers.

Layla Vanderbilt is the webmaster for a leading website that offers for debt consolidation advice and guidance.

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The studies for a college degree could be a time of dire financial efforts to pay for all the costs of education. Many people will stick to their education, despite a dire economic situation, choosing to sign personal student loans rather than give up college. This kind of financial aid is not available in more variants than private programs, and other than that, personal student loans require special criteria for eligibility. Consider the following details necessary for the application:

-You must be at least part-time enrolled with an eligible school.

-You should have a very good credit history, or if you have no credit, you can take a co-signer.

-The repayment terms have limitations.

-The amount you can get varies depending on the lender.

Collateral loans and federal consolidation loans are better choices than personal student loan but all the variants should be carefully analyzed in order to determine the best for the individual situation. For instance, You can get a lower rate if you consolidate loans, but repayment period will get longer. Some financial institutions provide different packages of personal student loans in order to provide solutions tailored to people’s needs.

Borrower-friendly loan providers offer the most advantageous of conditions. You will recognize them by the low limits, the well structured loan program and reduced interest rates. Banks will not approve personal students loans when you don’t have a credit history. Ask for requirements, terms and conditions online and compare between the different choices you are provided.

Do not start your quest before having an estimate of the education value. How much money do you need? Answer this question first and then apply. You should talk to the school you want to enroll with and ask for a cost analysis so that you may know what to apply for in personal student loans. Plus, it is important to take personal student loans as a last resort, something that you will only get if don’t match the criteria of any private or federal loan program.

There is a high range of variability of the interest rate in personal student loans. You have no influence or control when it comes to these fluctuations and all you can do is pay. The sum that you repay will be much higher than the one you borrowed. And here you have the major flaw of money lending.

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