Americans need help on spending
Swiping plastic to pay bills has been a consumer habit for 50 years. To mark the golden anniversary of the credit card, Champion Mortgage challenged thousands of consumers to make purchases without plastic last week (450 took up the challenge).
In 2000, Americans charged over $1 trillion on credit cards, plunging many into serious debt (story, page 16). The typical American's outstanding balance is $5,000 - and it's being paid off at an average interest rate of 15.71 percent.
Champion Mortgage surveyed some 800 adults nationwide and found that:
77 percent know off the top of their head how much is budgeted each month for household expenses and how much is owed on their credit cards.
76 percent sometimes or always pay more than the minimum required on a credit-card balance.
37 percent paid their bills late at least once last year.
26 percent have never reviewed their credit report.
15 percent have overdrawn their account at least once in the past year.
7 percent never balance their checkbook.
