Consumer Debt Consolidation Loan Statistics

You will feel comfort in the fact that you’re not alone, if you’re currently having trouble resolving your debt problems. Some interesting statistics are listed below that will show you how serious debt problems are nationwide…

In 2001, there were 1.45 million consumer bankruptcies. There were 1.21 million consumer bankruptcies in 2000; 1.28 million consumer bankruptcies in 1999; 1.39 million consumer bankruptcies in 1998.

Moody's delinquency index that measures the portion of card accounts whose monthly payments are more than 30-days past due, stood at 4.96 percent in May, compared with 4.32 percent a year ago and 5.06 percent in April.

7.8% income of the typical U.S. household save in 1990; in 1999 that same family spent 0.1% more than it earned.

Recently, four of the ten largest credit card issuers have increased the interest rate they charge consumers who enter a debt management program, including Citibank, First USA/Bank One, MBNA and Household Credit Services, according to information recently obtained. MBNA recently increased its interest rate by over half from 10% to 15.9%. This increase alone would cost a consumer with $10,000 in debt an additional $1,022 over three years.

In this survey, credit card issuers that charged the highest interest rates to credit counseling consumers include Sears (21.9%), American Express Optima (21.7%), Capital One (19.8%) and First Card (17.65%). At these rates, it would be impossible for a consumer to pay off a $25,000 debt at a typical monthly payment of $350.

Out of the largest ten credit card issuers only one (Chase Manhattan) has lowered its interest rate for credit counseling clients. Bank of America, First North American National Bank (FNANB), Mellon Bank, and US Bancorp are the credit card issuers that charge the lowest interest rate.

The total public debt of the US was $3,266,222,376,162.12 as of July 31, 2001.

Monthly, 55% of parents roll over credit card debt. When asked where they would put or advise their child to put $5,000 to save for education or some other long-term goal, 58% do not identify specific long-term investment vehicles such as mutual funds or stocks that historically offer higher rates of return. Instead, parents of more than 1/3 cite low-yielding certificates of deposit (CDs), savings accounts, and savings bonds. 12% say they would put savings in a bank or savings and loan, but are unable to articulate a specific type of account. Finally, all parents of less than half (45 percent) say they make a budget and stick to it most of the time.

Abdulrasool is a Content Editor at the Debt Consolidation Loan Program http://www.3debtconsolidation.com