Household Debt Rises – or does it?
I heard on the television that the average household revolving debt – like credit cards – is now about $8,000. Even more disturbing – according to the report – was that in 1990, the average level of credit card debt was $3,000.
At first, I thought to myself – “Golly, that is almost a 200% increase.” It is actually a 166% increase in an 18 year period. Wait a second – 18 years is a good long time. Is it enough to compare the $8K in 2008 dollars to the $3K from almost two decades ago? Here is an interesting comparison: in 1990, gold was about $400 an ounce, so $3,000 would have bought you about 7.5 ounces. In 2008, gold is about $900 an ounce, which $8,000 would get you about 9 ounces of gold. In relative terms, the average household revolving debt has increased about 20% (7.5 ounces of gold worth to 9 ounces of gold) in twenty years – still a worrying statistic, but no longer the apocalyptic vision as presented by the media.
More importantly, how are you managing your 9 ounces of gold worth of debt? The best strategy is to pay off your balance every month, but even then if you use a cash back credit card – you are going to optimize your use of your available credit by getting money back on purchases. If you do have a monthly balance, then lowering your finance charges with 0% credit cards will make a significant impact on your monthly budget. Choosing the right credit card is not a simple formula – every person’s situation is different and situations change over time also. Be sure to research the vast number of credit card ratings and reviews on the web to be a better informed consumer.
Other DeepMarket Articles
- Reduce Carbon One Link at a Time with DeepMarket and Carbonfund
- Running a seminar or live event
- Weapons of maths construction
- Headline Trading – Reuters NewsScope Archive
- LinkBaiting – Yes or No
Recommended by DeepMarket
- How long does your Rolodex last ? (LEADS Explorer)
- *** GIVEAWAY *** Win a Lawry's Seasoning "What's Your Flavor?" Kit ~ ARV $35! (Mommy Living the Life of Riley!)
- How much does a leads cost using Direct mail campaign? (LEADS Explorer)
- Do you sell the soap? Or are your advocates selling it virally? (LEADS Explorer)
- How to improve your sales pitch: shorten it (LEADS Explorer)
