Seems like the question of the hour is whether or not credit cards are the next financial domino to fall. I was emailed some stats today from that might help you come up with the answer.
-10% of Americans are taking out more cash advances on their credit cards than in the past.
-One in five individuals surveyed indicate they are “sometimes” (14%) or “always” (6%) unable to pay their credit card and/or loan(s) balances each month.
-An additional 8% can only make minimum payment required and another 8% either always or sometimes pay less than the minimum.
-22% have between $5,000 and $20,000 in credit card debt, while 3% have more than $40,000 in credit card debt.
-When looking at their debt as a percentage of their available credit, 25% are at or near the maximum limit of their primary card with an additional 20% are at or near the limit of their secondary card.
-Over the past year, 13% of respondents have found it a lot more difficult to keep up with credit card payments, while 25% have found it somewhat more difficult. That compares to just 10% who said it was less difficult.
(Sources: Market Watch and Standard & Poor’s)
If you’re wondering if your debt is too much debt, take the debt test and use the debt load worksheet found at FinancialLiteracyMonth.com.