First, Have a Budget

Alarming American Consumer Debt Statistics

Following is a good dose of reality regarding debt in America. These and other statistics are posted at ProgressiveRelief.com.

Consumer Debt Statistics:

* There are 1.3 billion payment cards - including credit cards, debit cards and store cards - in circulation in the United States. The average American home has 13 payment cards.
* Americans make over 1.5 trillion dollars worth of credit card purchases annually.
* The typical credit card purchase is 112% higher than if using cash.
* Over 40% of US families spend more than they earn.
* Americans carry, on average, $8400 in credit card debt.*** If one were to make a 2% payment every month at an annual APR of 15%, it would take about 30 years to pay off and include about $13,000 in interest.
* The average U.S household pays $950 in interest each year.
* About 18% of all U.S. personal consumption expenditures (PCE) are made on bank credit cards. If retail cards and debit cards are included, the figure rises to 24%.
* 96% of all Americans will be financially dependent on the government, family, or charity at retirement.
* Almost 1 in every 100 households in the United States will claim bankruptcy.
* According to the National Association of Realtors, the average homeowner stays in his home for 7.1 years. With an 8% mortgage, he will sell his home still owing over 90% on his mortgage. If he was to continue this trend, he would never pay off a mortgage in his lifetime. Only 2% of homes in America are paid for.
* On average, Americans can expect to receive only 37% of the amount they will need to live comfortably from their retirement plan.
* Nearly half of all Americans have less than $10,000 saved for their retirement. 39% of Americans are anxious about their ability to achieve their desired retirement lifestyle.

***In Ohio in 2008, that's $8750 on 14 cards.