Credit Card Is Adding The Silver Lining To Your Pocket

In the new millennium plastic money or credit cards have rendered a new zing factor to your pocket. This have not only made you economically more than flexible but subsequently added glamor to your financial image as well. No more than bulging out hip pockets with extra of liquid cash. Instead, the slimmer your pocket; the smarter you look. But behind all these inviting attributes of credit cards there looks to be a trap laid out for people who are unprompted and careless.

The usage of credit cards have got been on the highest fling this decennary and along with the usage, the debt rates have also somersaulted sky high. Majority of the citizens of the U.S. owe thousands of dollars as credit card bills. While gross dollar volume on bank credit cards have increased 2.5 modern times since 1994, the average transaction have increased about 16% over the past decade. The average transaction on a general intent credit card, carrying the VISA, MasterCard, American Express, or Discover brand, is now approaching $102, compared to $87 in 1994.

23rd Dec. 2004 is termed as Black Thursday and is poised to be a voluminous twenty-four hours in credit card usage in 2004. On this twenty-four hours Americans have got used credit and debit entry cards to pay for nearly $12 billion. This calculates to an average of more than than $8 million per minute; however it could easily top $20 million per minute during extremum hours.

In the present epoch credit card debt carried by an average American is about $8,562 (Approx.). The sum U.S. credit card debt in the first one-fourth of 2002 was approximately $60 billion (Approx.). Sum finance charges Americans paid in 2001is $50 billion (Approx.).

Recently, the New House Of York Times examined how the usage of credit have taken off dramatically in the United States since 1990. While the number of people holding charge cards grew about 75 percent. This went up from 82 million in 1990 to 144 million in 2003 and the amount they charged during that time period grew by a much larger percentage. It is approximately 350 percent, from $338 billion to $1.5 trillion.

Nellie Mae, the nation’s largest shaper of student loans states that the average undergraduate student have $2,200 in credit card debt. That figure leaps to $5,800 for alumnus students. Saint David Sandor, a frailty president at Visa USA, states that lone 54 percent of college students pay off their credit card balances every month.

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 sum of 1.2 billion credit and retail cards in North America. The number of credit card holders who declared bankruptcy last twelvemonth was a huge 1.3 million.

Credit cards have got undoubtedly given us better mileage in handling our finance; it have made us mobile and flexible in cash handling. But it is extremely of import to do proper use of this plastic money. There lies a large achromatic trench of debts if you utilize it recklessly. These slender plastic cards can often be the cause of majority debts if one is unprompted or unwise.

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