1. Credit And Debt Management: Introduction
  2. Credit And Debt Management: Credit Reports And Scores
  3. Credit And Debt Management: Building Credit From Scratch
  4. Credit And Debt Management: Repairing Credit
  5. Credit And Debt Management: Credit Cards
  6. Credit And Debt Management: Reducing Debt
  7. Credit And Debt Management: Debt Collection And Bankruptcy
  8. Credit And Debt Management: Credit Counseling
  9. Credit And Debt Management: Credit And Relationships
  10. Credit And Debt Management: Conclusion
by Cathy Pareto

America is addicted to debt. Just call us the credit nation, from the highest levels of government all the way down to Main Street USA. America and Americans are obsessed with credit and rely on debt every day. Even as the nation and its consumers struggle under record debt levels, we continue to rack up more.

Like it or not, we need credit. As we have established during and since the global financial meltdown of 2008, credit keeps the wheels of the global money machine well greased. Concepts, such as buying a home, starting a business, or buying an investment property often could not become realities without some form of credit. In fact, utility companies, banks, landlords and even employers often require credit checks before extending services or employment. Consider the following statistics:

  • As reported by the Federal Reserve Board (FRB), the size of total U.S. consumer debt grew nearly five times in size from $824 billion in 1990 to nearly $2.2 trillion in 2005.
  • According to Experian, without factoring in mortgages, in 2008 the average American held over $16,635 in debt.
  • According to ComScore, in 2008 55% of Americans maintained a running balance on their credit card accounts.
  • According to Visa and MasterCard, in 2006 alone there were 984 million bank-issued Visa and MasterCard credit and debit card accounts in the United States.
  • Mail Monitor, a credit card direct mail tracking service, reports that roughly 4.2 billion credit card offers were made to U.S. households in 2008.
  • An online poll conducted by CardTrak.com reports that the average rate for bank credit cards reached a whopping 19% in March 2007, whereas the average rate in 2003 was 16.5%.
Credit and its associated debts are a part of our reality, and will continue to be for the foreseeable future, and it is up to each individual consumer to not let credit ruin them. Unfortunately for many, it already has. The level of consumer debt has grown exponentially in the U.S., where tens of millions of credit consumers find themselves overwhelmed by their personal debts.

If you find yourself in a credit or debt bind, keep reading. This tutorial will provide an overview of credit and debt management concepts that every consumer should know about so they know how to live with credit.

Learn how avoiding loans can be possible and enjoyable in Can You Live A Debt-Free Life?



Credit And Debt Management: Credit Reports And Scores
Related Articles
  1. Investing

    Investing In Credit Card Companies

    This investment requires keeping an eye on consumer indexes and the overall health of the economy.
  2. Personal Finance

    How to Establish a Credit History

    Can't get a credit card without a credit history, and can't get a history without a card? Break the Catch-22 with these tips on how to build good credit.
  3. Personal Finance

    Time to Accept Credit Card Offers Again?

    How much you could get and whether to respond
  4. Personal Finance

    Why and How to Use Credit Cards Effectively

    When used responsibly, credit cards play a big role in establishing a good credit score that can help you obtain loans, mortgages and insurance.
  5. Personal Finance

    Best Credit Cards For People With Poor Credit Scores

    There are still ways you can build credit with a credit card, even if you have bad credit.
  6. Personal Finance

    How Credit Cards Affect Your Credit Rating

    The average American household has four cards, but does that mean more is better?
  7. Personal Finance

    Credit Card Tutorial

    Credit cards can be a useful tool if you know what you are getting into. Learn the risks, rules, history of credit cards.
  8. Personal Finance

    How Your Credit Score Compares to the Average American's

    While only a small percentage of Americans have terrible credit scores, a whopping 30% have poor or bad credit, according to the Consumer Financial Protection Bureau.
  9. Small Business

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  10. Personal Finance

    How Much Credit Card Debt Do Americans Have?

    Household debt is on the rise in the U.S., with credit cards, car loans and student loan debt representing major threats to Americans’ financial health.
Frequently Asked Questions
  1. What Licenses Do Financial Advisors Need to Have?

    Understand why all financial advisors are required to be licensed, and identify the specific licenses that must be obtained ...
  2. When Is Managerial Accounting Appropriate?

    Understand the difference between managerial accounting and financial accounting. Learn common scenarios in which managerial ...
  3. Do ETFs Generate Capital Gains for Shareholders?

    Learn how exchange-traded funds (ETFs) can generate taxable capital gains for shareholders due to occasional and substantial ...
  4. Why is there a negative correlation between quantity demanded and price?

    Learn what the law of demand is, the basic assumption of the law of demand and why there is a negative correlation between ...
Trading Center