As the Obama administration’s current stimulus plan makes its way through Congress, questions about consumer spending swirl around the debate. Some believe that more tax cuts are needed to stimulate consumer spending and bolster the economy, while others argue that irresponsible spending was one of the many factors contributing to the crisis.
The U.S. consumer debt load is now measured in the trillions and continues to climb every year. The more debt we carry, the more we must work simply to pay the interest. Recent figures indicate that the average consumer spends 90% of disposable income paying down debt. This has many consequences, including overwhelming financial stress, people working late in their lives, and the leveraging of our children’s futures.
Statistics:
* The current generation spends $1.22 dollars for every dollar earned
* There are 1.2 billion credit cards in the U.S.
* 60% of all credit card users carry a balance from month to month
* 13% of the population owes $25k or more and carry a balance every month
* $15 billion dollars are spent in late fees every year by U.S. citizens
* 30% of profit from credit card companies is from late penalties
* 1 in 4 bankruptcies are filed by people under the age of 25
weProsper aims to teach young people about financial literacy so that they can better understand the complexities and consequences of consumer debt. By learning good habits early in life, children and teenagers will be better equipped to maintain control of their finances and avoid the dangers of credit card debt. Don’t become another statistic: read more about how iThryv Professor can help kids succeed.
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