Credit Card Debt - What Do Americans Really Owe?

PORT CHARLOTTE, Fla.--(BUSINESS WIRE)--According to a new survey released today by CardTrak.com(R), the median
amount of credit card debt carried by Americans is about $6,600 while
the mean (or average) credit card debt load is nearly $9,900.

Based on an online poll of slightly more than 55,000 consumers that
concluded in April, 61% said they carryover debt each month on their
credit cards, while 31% said they pay-off balances monthly and 7% stated
they have no credit cards.

Of cardholders carrying debt, over 64% had balances under $10,000.
However, an astonishing 13% of the same group said they carry total
credit card balances in excess of $25,000.

Robert B. McKinley, head of CardTrak.com, says, "While the average
working stiff may revolve between $6,000 and $7,000 each month, the
nation is bloated with credit card high-rollers who carry five-figure
balances."

McKinley notes there has been much debate about the definition and
calculation of U.S. credit card debt. However, the CardTrak.com poll
results confirm the latest industry data.

At the end of 2006, Americans owed $745 billion on general purpose
credit cards including $641 billion on VISA(R)/MasterCard(R) cards, and
$104 billion on American Express(R)/Discover(R) cards, according to
CardWeb.com ().
Consumers also owed an estimated $105 billion on limited purpose cards
or store/gas credit cards. In total, American cardholders owed $850
billion on all credit cards as of December 31, 2006, according to
CardWeb.com ().

Furthermore, the latest revolving credit figures released by the Federal
Reserve show Americans owed $888 billion in March, which includes lines
of credit attached to checking accounts.

Of the $850 billion in credit card debt, about 18% is paid-off each
month without incurring interest charges and about 3% is revolving
business credit card debt, according to CardData ().
Discounting interest-free and commercial debt, Americans are revolving
about $672 billion on all credit cards.

Of the nation's 111 million households, about 7% have no credit cards
and 21% do not have a general purpose or major credit card. Discounting
those who have no credit cards and those who only have a low balance
store or gas credit card, there are 88 million households using credit
cards today. Therefore, average credit card debt is $9659 per household
($850 billion/88 million).

If the universe is limited to households that carry balances forward
each month, then the assumption could be made that 61% of the 111
million households, or 68 million, revolve their credit card debt
monthly. In this calculation the average credit card debt is $9882 per
household ($672 billion/68 million).

McKinley says, "No matter how you slice or dice it Americans owe a
significant amount on their credit cards and with rising interest rates
the annual debt service cost per household is now approaching $1500."

Survey results, as well as historical data, is available to qualified
members of the news media via CardTrak.com's CardFacts service.

About CardTrak.com

CardTrak.com, ,
is the nation's most established and most trusted credit card advisory
service for consumers. Since 1986 CardTrak has educated millions of
consumers via printed publications on where to find the best credit
cards and how to get the most from their credit cards. An Internet
pioneer in 1995, CardTrak.com continues to provide the most
comprehensive, objective service for consumers to learn, search and
compare credit card offers and benefits. CardTrak follows credit cards,
debit cards, gift cards, and smart cards. CardTrak.com's free services
include daily credit card news, commentary, alerts, FAQs, tools, tips,
calculators, incentives, perks, statistics, polls, glossary, terms,
keyword search, and sweepstakes. CardTrak is a registered trademark of
CardTrak LLC. Professor Cardworthy, Professor Cardworthy's Corner and
Cardworthy are trademarks of CardTrak LLC. CardTrak LLC is a
privately-held company headquartered in Port Charlotte, Florida with
branch offices nationwide.