09/15/2005
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In a recent report from Demos-USA entitled "Generation Broke, The Growth of Debt Among Young Americans," by Tama Draut and Javier Silva, the following statistics regarding credit card use in the United States are frightening:
-- Average credit card debt among indebted young adults increased by 55% between 1992-2001, to $4,088 (based on the value of the dollar in 2001).
-- Young Americans now have the second highest rate of bankruptcy, just after those aged 25 to 44. The rate among 25-34 year-olds increased between 1991 and 2001, indicating that Gen-Xers were more likely to file bankruptcy as young adults than were young Boomers at the same age.
-- Among the youngest adult household with incomes below $50,000 (2/3 of younger households [18-24 years old]), nearly one in seven with credit card debt is in debt hardship.
-- The average indebted young adult spends nearly 25 cents of every dollar of income on debt payments.
-- Of all college seniors, 96% have credit cards.
-- Nearly one out of every five 18- to 24-year-olds reported being late or missing payments on a loan within the last year.
Quick Fact: About 20% of all credit cards are "maxed out" by their owners.
One Paycheck at a Time Inc. is the leading source for sensible debt reduction solutions. Its products include the One Paycheck at a Time paperback (ISBN: 1591133327), as well as an ebook format, and the eTools program. The author of the book and president of the company, Kimberly A. Griffiths, has been through the vicious cycle of debt herself and has made it her personal goal to share her experience to help others. More information can be found about the company and its products at www.1PaycheckataTime.com.
© 2005 Kimberly A. GriffithsThe views and opinions expressed in these articles do not necessarily reflect those of College Central Network, Inc. or its affiliates. Reference to any company, organization, product, or service does not constitute endorsement by College Central Network, Inc., its affiliates or associated companies. The information provided is not intended to replace the advice or guidance of your legal, financial, or medical professional.