Monday, June 29, 2015

ATTENTION: Americans Households Have The Highest Credit Card Debt Since Recession Meanwhile More People Are Delaying Major Life Events Like Getting Married Because They’re Worried About Their Finances.

Americans households have the highest credit card debt since recession
On average, American households are $7,177 in debt, according to a CardHub study. That’s a lot of debt, but not necessarily an unconquerable amount. Now’s a good time to start digging your way out of it.
American consumers are accumulating credit card debt at the same rate as before the recession, despite paying down a huge chunk of that borrowing during the first quarter of this year, according to CardHub’s 2015 Credit Card Debt Study released this week.
During the first three months of 2015, consumers paid down $34.7 billion in debt owed to credit card companies. That’s about 7 percent above the average of the past two years.
But American consumers still ended 2014 with $57 billion in debt, a historic high.
“Simply put, it seems that we have a societal addiction to debt. The only cure will be to redefine what we consider luxuries and necessities as well as to improve our overall financial literacy,” an earlier CardHub report declared.
The Federal Reserve’s April consumer credit report confirmed CardHub’s findings, showing an escalation of the country’s overall borrowing levels. Revolving credit, which includes all types of credit, including credit card balances, increased $8.6 billion in April, nearly double March’s increase.
The average household has $7,177 in debt, according to the CardHub report. That amount is the largest it has been in six years, and is indicative of a national spending problem, according to expert observers.

Twice as many Americans now forced to delay marriage, college, kids
Thanks to crushing financial concerns, more Americans are now being forced to put off major life events like going to college, getting married and having kids.
According to a survey released Thursday of 1,010 adults by the American Institute of CPAs, more than half of American adults (51%) say they delayed at least one important life decision — like having kids or retiring — because of financial reasons. This is up from just one in three (31%) who did that in 2007. Despite an improving economy and job market, “the specific life events Americans are delaying for financial reasons have more than doubled from the 2007 survey,” the institute reveals.
This may be thanks to the fact that we’ve learned some hard lessons since the recession, says Ernie Almonte, the chair of the AICPA’s National CPA Financial Literacy Commission, an organization devoted to helping Americans with financial literacy. “When you peel the onion back, you start to see that what they have experienced — their parents, friends losing their homes or jobs or people in so much debt they file for bankruptcy — stuck with them,” he says. “They have learned from those lessons…people are looking at things now and saying ‘I don’t have enough savings for that’ or ‘I will put it off for a year or two until I’m financially stable.’”
6 key life events Americans felt they had to delay due to financial concerns

2007 2015
Higher education 11% 24%
Buying a home 14% 22%
Medical procedure 9% 19%
Retirement 9% 18%
Having children 5% 13%
Marriage 6% 12%
Source: AICPA
70 million Americans teetering on edge of financial ruin
According to a survey of 1,000 adults released by on Tuesday, nearly one in three (29%) American adults (that’s roughly 70 million) have no emergency savings at all — the highest percentage since Bankrate began doing this survey five years ago.

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