Originally published January 25 2005
Most consumers have no strategy when it comes to managing credit card debt
by Mike Adams, the Health Ranger, NaturalNews Editor
With the average U.S. household carrying over $9,000 in credit card debt, it's easy to see that good money management practices aren't being practiced by most consumers. Financial advisors say that the best way to attack your credit card debt is to make a financial plan and stick to it. And although this advice may be heeded to by some, current spending trends show that even those who struggle with monthly payments still plan to make big-ticket purchases and slip deeper into debt this year.
If you dream of living debt-free as the bills pile up, you're not alone.
A survey of 1,000 consumers by LendingTree.com found that most people have no strategy to manage their debt, and some who struggle to make monthly payments still plan to go deeper in the hole with big-ticket purchases.
The typical U.S. household carries $9,200 in credit card debt.
The U.S. Federal Reserve reports that debt levels of U.S. households fell $8.7 billion in November after a sharp drop in charge-card and credit activity.
Total consumer debt fell 5% to a seasonally-adjusted $2.085 trillion, including a $7.2 billion decline in revolving credit such as credit cards.
Non-revolving credit, including car loans, tuition and vacations, fell $1.5 billion.
The monthly decline was the largest since January 1943, when the Fed began collecting consumer-credit data.
Wall Street analysts expected consumer credit to increase by $6 billion in November.
However, the Federal Reserve revised October's consumer-credit increase to $9.6 billion, up from the originally-reported $7.7 billion rise.
The best way to combat debt, says Ed Powell, chief consumer officer at LendingTree.com in Charlotte, N.C., is to make a plan to manage debt and stick to it, and to be an educated borrower.
Understand the term, or length, of the loan, because low payments over a long term are expensive.
Despite growing debt and lack of a budget, 40% of the respondents said they're knowledgeable about personal finance.
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