Bankruptcy & Foreclosures

Every few blog posts I like to take an opportunity to share some of the statistics that come across my desk each day. I hope not to discourage anyone with these stat run-downs but rather to demonstrate the reality that financial carelessness can lead to serious and often long-term damage.

The average American household has 13 payment cards, including credit cards, debit cards and store cards. As of 2006 there were 1.3 billion payment cards in circulation in the United States alone and that number continues to grow each day.

Americans carry, on average, a balance of $5,800 worth of credit card debt from month to month. Here’s where it really gets sad. If you were to make the minimum payment on that debt every month, it would take 30 years to pay off and include an additional $15,000 in interest charges. Really take a moment to think about that.

According to the American Bankruptcy Institute (ABI), 302,829 people filed for bankruptcy in the first quarter of 2000 and that number has been increasing ever since.

According to the Federal Reserve, close to 50% of all families in the United States spend more than they earn. This means that debt is everywhere!

Only 2% of homes in America are paid off.

Almost one out of every 100 households in the United States will file for bankruptcy.

Again, these stats aren’t meant to scare you but rather to make you stop and think. Debt management begins with each of us and in the decisions we make on a daily basis.