The average monthly debt on a college students charge

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* The average monthly debt on a college student’s charge account, according to one study, is close to $2,000. * In a recent year, Americans charged more than $1 trillion in purchases with their credit cards. That was more than they spent in cash. * In the fourth quarter of 2007, the national average of credit card debt per bankcard user rose to $1,694, which was 4.81% higher than in the third quarter. * Foreclosure filings nationwide soared 57% in January 2008 over the same month in the previous year. Nevada, California, and Florida had the highest foreclosure rates. In a recent month, one of every 167 homes in Nevada was in a stage of foreclosure. * all about Y U Source: Debt Solutions of America, (accessed May 2006). Causes of Personal Financial Problems Excessive use of credit/Over- obligation 39% Reduced income/ Unemployment 24% Poor money management 15% Divorce/ Separation 8% Other 14% S Smart business people carefully consider their use of credit. They evaluate who they lend to, and how they finance their own operations. They know that getting overextended on credit can destroy their business. Individuals need to evaluate their personal credit positions using the same thought processes used by business people. Some of you might consider the idea of not having a credit card a ridiculous proposition. But the reality is that the misuse of credit cards brings financial hardship to millions of Americans each year. Credit card companies aggressively market their cards with images of glamour and happiness. But there isn’t much glamour in paying an 18% to 21% interest rate, and there is very little happiness to be found in filing for personal bankruptcy. What Do You Think? * Should you cut up your credit card(s)? YES: Americans are carrying huge personal debt burdens. Credit cards encourage unnecessary, spontaneous expenditures. The interest rates on credit cards are extremely high, which causes debt problems to escalate exponentially. NO: Credit cards are a necessity for transactions in today’s economy. In fact, many transactions are difficult or impossible to carry out without a credit card. People should learn to use credit cards responsibly. * The authors’ comments on this situation appear on page 434. Sources: Debtsmart, ; Robin Marantz Henig, “Teen Credit Cards Actually Teach Responsibility,” USAToday.com , July 30, 2001. About the Numbers * Presented below is a chart that shows the major causes of personal financial problems. Note the excessive use of credit, which is cited as the number-one cause. This often translates into addiction to credit cards. Should You Be Carrying Plastic? 416 PDF Watermark Remover DEMO : Purchase from to remove the watermark
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DO IT! Comprehensive The following selected transactions relate to Falcetto Company.
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