Decades of Credit Card Debt

For decades, Americans have used credit cards for many different reasons. Some use them for emergencies, bills or clothing; some people use their credit card for entertainment, miscellaneous spending and the list goes on. Whatever we use our credit cards for; the fact is that Americans are in debt, and a lot of it. The risks of carrying cash have all but dissipated with the newer form of interest-laden currency.

Some may even view this new epidemic as people being irresponsible with their spending habits. Some may view it as a sign of the times and exactly how many American families are struggling to make ends meet. Some see big business taking advantage of a time when people need help and since some that may not usually even have a credit card, they are so strapped for cash, and it is a way of placing a band-aid on their financial problems for the time being.

Credit card companies and banks have been somewhat predatory and irresponsible in their lending. They can make it seem so easy to pay off what you owe, and their advertising of a better time can be luring to the struggling families in this economy. Soliciting teens as soon as they turn eighteen years old and getting them started with their first credit card is also another irresponsible move our banks have made. While some teens are responsible and knowledgeable enough to pay this debt off, most are excited at the mere fact that they can buy something and not have to pay for it at that moment. The future and the bills that will follow that transaction are not in the forefront of their minds.

This has been an issue for decades, and it seems that the trend of staggering statistics began in the Vietnam Era. While we were fighting a war that many Americans did not support and our government made what seemed like empty promises, credit cards and spending was quite appealing. In an uncertain time, spending is more and more appealing. It lifts the weight that is on our shoulders. Whether it is a need or a want, when we have something new, it feels good. So, in wartime spending seems like a very small issue to many people. Our country has had few years since the Vietnam War where we feel at peace and safe.

According to the Federal Reserve, in 1967 the credit card debt in America was at 1.4 billion dollars (USD). Since that time, Americans have managed to get deeper and deeper in credit card debt and in 30 years, the credit card debt has increased by 75 percent that takes us to over $950 billion. That amount, however, is not all a result of spending. Interest rates have skyrocketed over the past three decades as well. What was once a 2.87 percent interest rate is now up to 20 percent, which is a 10 percent increase in three decades. Creditors responded to supply and demand and went above and beyond what seemed reasonable. Yet because so many people rely on their credit cards, they eat the high interest rates.

These sobering statistics begs the question, how are we going to repair the damage that has been done? There is more than one way to reduce and eliminate your credit card debt. Try to remember, however, that some of these strategies can be dangerous to your future, and it is important to be sure that you are looking years ahead before you make an educated decision about how you will handle your debts and paying them off.