Did You Know That Most Americans Carry No Credit Card Debt?

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InCharge Debt Solutions

Apr 03, 2012, 02:52 ET

InCharge Debt Solutions Offers Five Ways You Can Join the 63%

ORLANDO, Fla., April 3, 2012 /PRNewswire-USNewswire/ -- Recent headlines and sound bites might have you thinking otherwise, but analysis of credit card usage data indicate that the clear majority of Americans do not hold credit card debt. In fact, according to the Federal Reserve, more than a quarter of Americans have no credit cards at all. Among cardholders, only half carry a balance (roughly 37% of the population). That leaves 63% of the population credit card debt free.

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"If you feel compelled to overspend on credit cards because your friends are doing it, you should get new friends," adds Karen Carlson, Director of Education and Creative Programs at InCharge Debt Solutions. "Headlines that tout average credit card debts of $10,000-$20,000 are really talking about average debt levels for people who carry debt, not the general population."

"The real story here is that the $780+ billion in credit card debt is spread out over a smaller group of people," adds Carlson. "If you carry credit card debt, you put yourself at much higher risk for bankruptcy, foreclosure, divorce and other negative situations, including the inability to retire in later years."

InCharge Debt Solutions, a nonprofit credit counseling agency, is urging debt-distressed Americans to look past "the 99%" and the "1%," and focus on growing the 63% who call themselves credit card debt-free. Here are five key ways to get control of your credit card debt:

  1. Make a budget. If you've never succeeded at maintaining a monthly budget, make one tied to your paycheck. Modify and adjust every two weeks based on your expenses and habits. A shorter budget cycle allows for faster fine-tuning.
  2. Cut back. This is the hard part, you must spend less than you make. Your parents lived without cable TV and eating out multiple evenings per week, and so can you. If you can't cut back anymore, create a strategy to grow your income.
  3. Leave the Cards at Home. If you don't have them with you, you can't use them. Use cash instead, and if you are out of cash, (see 2. above) don't spend.
  4. Develop a Vision. Without a vision of where you want to go financially, your short term goals are unsustainable.  
  5. Get help. A nonprofit credit counseling agency can help you find a solution that eliminates debt faster than paying minimum payments on your own. Don't be afraid to get the support you need. "At InCharge Debt Solutions, we help consumers achieve lower interest rates and fees and provide free access to a library of award-winning financial tools and education," adds Carlson.

InCharge Debt Solutions, a 501(c)(3) nonprofit organization, provides bankruptcy counseling, credit counseling, and housing counseling services to consumers and service members in need of financial literacy education, money management guidance, and help finding the right debt solution for their specific situation.

For more information, contact InCharge Debt Solutions:

About InCharge® Debt Solutions

InCharge® Debt Solutions is a 501(c)(3) non-profit organization specializing in personal finance education, housing counseling, bankruptcy services, and credit counseling. Founded in 1997, InCharge interacted with over 1.1 million consumers in 2011 alone.  InCharge is affiliated with InCharge® Education Foundation, Inc. (ICEF) which is dedicated to providing educational products, services and research supporting the personal financial literacy of consumers across America.  ICEF also provides financial literacy training to servicemembers and their families through MilitaryMoney.com.  InCharge is a member of the National Foundation for Credit Counseling (NFCC), and is accredited by the Council on Accreditation (COA). 

Contact: Media Relations
InCharge® Debt Solutions
(407) 532-5599
[email protected]

SOURCE InCharge Debt Solutions

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