Debt is calculated by adding up all of a person's assets (cars, property, real estate) and subtracting the total of all outstanding loans. Americans generally owe one or more types of debt.
Household Debt
The average American's household debt is nearly $118,000, according to VisualEconomics. This is figured by adding the amount of money they have in the bank to their home's value along with any other property they own and subtracting the amount they owe to the bank for their mortgage or other outstanding loans.
Credit Card Debt
The average household credit card debt was reported to be $7,394 in February 2010. Since the recession which began in 2007, this amount has gone down, which indicates that most Americans are paying down credit card debt rather than adding to it.
Tips for Paying Off Debt
Paying down debit can be easier if you use one or more of the following tips. Pay off higher interest debts before lower interest debts. Use a personal or family budget to identify where your money is spent, and reduce or eliminate non-essential spending. Stop taking on additional debt to buy things that you do not need. A full list of these tips can be found under the Resources section at the end of this article.
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