Reality Check: Half Of Households Have No Credit Card Debt

In reality, half of American households have no credit card debt at all and nearly a quarter more have less than $2,200 in credit card debt. In reality, half of American households have no credit card debt and thought that you were ok with your balance, think again. If you???ve ever heard that the average household carries $9,000 of credit card debt and thought that you were ok with your balance, think again.

For many, credit cards are an extension of income and that is when things can go very wrong. But at no time should the place to carry that debt be a credit card. There are both times to have and places to carry debt, even large amounts of it.

There was an article published recently at CreditCards.com with the results of a study fielded by GfK Roper Public Affairs and Media and sponsored by CreditCards.com that was touted as a ???benchmark report [that] delves into every aspect of credit cards??? role in people???s lives: how Americans use, manage, understand, select, and feel about credit cards.???

One paragraph in Taking Charge: America???s Relationship with Credit Cards reads: ???By some estimates, the average American household has over $9,300 in credit card debt. Yet, despite Americans??? concern about their spending habits, few people are willing to own up to their balances: over 90 percent of survey respondents believe they had the same amount ??? or less ??? debt as the average American.???

The report wanted us to believe that everyone either lies about their credit card debt or that they are in denial about it. The response however matches the numbers from the Federal Reserve Board???s Survey of Consumer Finances. More than 90 percent of American households do have less than $9,300 in credit card debt. The respondents weren???t lying or in denial. The question that was asked implied that the average American has more than four times the amount of debt they actually have, so they all said, ???No, I have less.???

When you take all the credit card debt there is and divide it by the number of people who have that debt, you would end up with a figure of around $9,000, giving you, yes, the average credit card debt. But what the average number doesn???t tell you is that if my brother and I are eating a Dilly Bar at Dairy Queen with Warren Buffet and Bill Gates, the average net worth between the four of us is $22.5 billion. In reality, my brother and I have nothing and Warren and Bill have it all. You see the problem with average.

For an update on the numbers, the Federal Reserve Board should conclude this month with their 2007 Survey of Consumer Finances. This survey dates back to 1962, but has been conducted triennially since 1983 to provide a representative picture of what Americans own???from houses and cars to stocks and bonds. It also gives an updated view of how and how much consumers borrow and how they bank. Naturally, the numbers go up, about the same, every year. From 1990 to 2000 debt doubled.

???The results of the survey will fill a gap in our knowledge about the financial circumstances of different types of households," Ben S. Bernanke, Chairman of the Board of Governors of the Federal Reserve System, said in a letter to prospective survey participants. Past study results have been important in policy discussions regarding pension and social security reform, tax policy, deposit insurance reform, consumer debt and a broad range of other issues.

Summary results for the 2007 study will be published in early 2009 after all data from the survey have been assessed and analyzed. Until then, we now have the finalized data from the 2004 survey.

According to the 2004 Survey of Consumer Finance, more than half of all households, 53.8 percent have no credit card debt. About half that number, a quarter of all households, report having no credit card whatsoever. The other chunk, nearly 29 percent of all households, pay off their balances every month.

Of the 46 or so percent of households that carry some amount of credit card debt, the median balance, or the number in the middle, is $2,200. That means that half of the roughly 46 percent of American households that carry credit card debt have less than $2,200 in credit card debt; the other half owes more.

If you have it, you have a problem that needs to be fixed. In other words: it is not normal to have high amounts of credit card debt. About 8.3 percent of them carry $9,000 or more. In other words: it is not normal to have high amounts of credit card debt.

About 8.3 percent of them carry $9,000 or more. If all the numbers from the 2004 Survey of Consumer Finances are understood and interpreted correctly, that would indicate only 23 percent of households have more than $2,200 in credit card debt.

Help is out there. If you have credit card debt admitting there is a problem is the first step, then getting help. Carrying a long-time balance is incredibly costly, and not just in monetary terms.

Everyone must know that their balances should be paid off every month. There are many ways people acquire credit card debt: medical emergency, car breakdown, tuition and books, and impulse buys.

Steps To Getting A Mortgage And Buying A Home - Part 2

As you read this article, you will find out about the crucial phase of actually buying a home and moving into your new home. Buying a new home is not just about researching mortgages and applying for mortgages, theres the important step of moving in.

In this buying a home article, you will learn:
* About the negotiation of buying a home
* What does a solicitor do in the process of buying a home
* Property valuation and surveying
* Completing the mortgage application

About the negotiation of buying a home:
The negotiation process is one which for the first time home buyer, is not one which you are likely to excel at. Negotiation is an art which some people have learned to master, while others who are new to negotiation do not always get the best deals.

The dynamics of the negation is this: the home owner has a property, and wants to get the most money he or she can. You are a potential buyer, and want to get the lowest price possible. The degree that you are a better negotiator will determine how lower you buy the property for, and the more skilled the existing home owner in the art of negotiation, will determine how much more he manages to get out of the deal.

The last paragraph may make you think whether you can really get the best prices for the property. However, there is a way to make life easier when negotiating, and that is with a bit of research.

To be able to get the best price a suggestion is to look at similar style properties in the area you are thinking to buy a home in and look at the prices. That way, you can make sure that you are getting the real estate at least at the market value or around there.

What does a solicitor do in the process of buying a home:
After you have found your new home to buy and started the negotiation process, you can now look to finding a solicitor. A solicitor will help you with all the paperwork necessary in the process of buying a home. Some people have mixed views at this point, some like to apply for the mortgage, while others like to appoint the solicitor first.

Appointing the solicitor in the beginning can save a lot of hassle later on in the process of buying your new home. Now you can apply for the mortgage.

Property valuation and surveying:
Even though properties in the area may have a similar price, there are some things we do not know about the property. Is there any structural damage? Are there any unseen expenses, which is why the seller is planning to sell?

The property valuation and surveying will bring out how much the property is worth. Before a mortgage lender will agree to give you a mortgage, they will need the valuation and surveying done on the property. The real estate professional fees for valuation and surveying vary, and again research can help you find the best prices.

Completing the mortgage application:
You now can speak to your mortgage lender and get confirmation that they are willing to give you a mortgage for the sum needed to buy the home. At this point most of the hard work in the process of buying a home has been accomplished.

When the mortgage lender gives you written confirmation, and the property taken off the market, mortgage finalized, then you can look forward to moving in! If you have aspirations to buy more than 1 property, then the first time experience will be beneficial to you, in the future. The process of buying a home can be a hard one, for the first time.