Credit Card Debt Management

Money, a book written by a Yale University professor stating that consumers will only take out a loan that is “no more than they absolutely require,” seems a joke in 21^st Century America.

Not surprisingly, the book was written in 1877. Now, the average household credit card debt hovers around $9,000, according to industry figures. Borrowing money is not only encouraged, but has become the norm, with consumers pursuing credit card debt like lemmings to the sea.

Around the time Money was published, America was beginning to shift away from concepts like cash-only purchases and gravitate more toward the precursors to credit card debt. For instance, monthly installment plans became an increasingly popular way for middle class citizens to acquire status symbols like cars and pianos. Of course, monthly installment plans still exist today, along with a wide variety of other financing options.

The progression of America’s credit card debt is a fascinating study in sociology and psychology. There are many factors involved, including inflation, underinsured families and simply a cultural fixation with material goods.

Credit card debt has also carried consequences, such as more bankruptcy filings. The age of Americans saddled with hefty credit card debt is getting ever younger. Handled responsibly, credit can certainly be used in a consumer’s favor, like beefing up their FICO score, for instance. Unfortunately, instead of borrowing “no more than they absolutely require,” increasing numbers of Americans are seeing disastrous results from borrowing absolutely as much as possible.

This blog will encourage discussion of such issues, list strategies for credit card debt management and provide updates on news and trends within the credit industry. Banks.com is providing this service because being a savvy, educated consumer is the only way to stay ahead of the curve and stand apart from the lemmings.