Here are a few statistics:
According to American Consumer Credit Counseling, the total U.S. credit card debt in the first quarter of 2002 was approximately $60 billion. The average credit card interest rate is around 18.9%.
Approximately half of all credit card holders pay only their minimum monthly requirements. There are a total of 1.2 billion credit and retail cards in North America. The average American household is solicited seven times a year by credit card companies.
More facts:
The Motley Fool’s Credit Center features several more mind-blowing statistics:
- Total consumer credit: $1.7 trillion.
- Credit card debt carried by the average American: $8,562.
- Total finance charges Americans paid in 2001: $50 billion.
- Percent of U.S. households deemed credit worthy by the lending industry: 78%.
- Number of credit card holders who declared bankruptcy last year: 1.3 million.
The fact is, there is a huge problem with what is being taught in America today and the financial institutions are not doing a very good job teaching what is going on.
Financial institutions run and operate on 4 basic principles:
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They want our money
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They want it on an ongoing basis
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They want to hold onto it for as long as possible
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They want to prevent us from getting at it and if they must give it to us, they do so as slow as possible
I do not fault financial institutions for what they do. If I ran an institution, I would (and I would bet you would also) work by the same principles. What I have a problem with is that they do not teach individuals how to use these same principles in our own lives.
I put together a free CD that hopefully makes the difference in one or two lives. Check it out at www.BrandonHansen.com.
Until later,
B
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