The Truth About Credit Card Debt

By Liz Pulliam Weston

Posted by Mike Hughes

Youve probably heard that the average American carries more than $8,000 in credit card debt.Its a figure frequently cited by politicians, journalists and pundits as a sure sign of impending economic collapse. They argue that consumers, already struggling under this massive burden of debt, soon will have to stop spending like drunken sailors. The economic recovery, therefore, is doomed! The surprising thing about this statistic isnt that its so widely known. Rather, its that the statistic paints a picture thats just plain wrong.

-In reality, most Americans owe nothing to credit card companies.
-Most households that carry balances owe $2,000 or less.
-Only about 1 in 20 American households owes $8,000 or more on credit cards.

These figures are from the Federal Reserves 2001 Survey of Consumer Finances, one of the most comprehensive assessments of what Americans own and owe.

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