Credit Cards and Consumer Debt

BILLSHRINK Demystikuing Credit Cards & Consumer Debt 1.6 credit. card carrying It is estimated that in 2010 there will be 181 million Americans carrying credit cards. If that many people had credit cards in 2008, there would have been an average of adults per household. Consumer Debt 1968 Debt In 1968 U.S. credit card debt was less than $8 ballion (adjusted for inflation). By 2009, that debt soared to $972.73 billion. 2009 Debt What the CARD Act Does for Consumers IT DOES IT DOES NOT Prevent unfair fee traps. 1 Restrict creation of new fees. Ban unfair interest rate increases on existing debt. 2 Cap interest rates. Mandate plain language disclosures.3 Restrict raising of existing fees. Create accountability for deceptive lenders. 4 Restrict rate jacking on variable rate cards. Provides protections for students & young people. 5 Guarantee the consumer a warning if their credit limit is lowered. Credit Card Issuers Market Share (Percentage) 20% 40% 60% 80% 100% American JPMorgan Chase Capital One Discove Bank of America Citi Other Express The top four issuers corner a large portion of the market, and are some of the biggest bailout recipients. 400 350 300 250 200 150 100 50 Visa (Credit) Visa (Debit) MasterCard (Debit) American Express (Ciedit) MasterCard Discover (Credit) (Cedit) Credit Card Rates The Federal Reserve has pushed interest rates to incredible lows, but credit card rates remain incredibly high. uS. Anage Business Low Interest Cash Back Balance Transfer Student Airline Reward Instant Approval Bad Credit 0% 10% 15% 20% 25% Annual Percentage Rate Average Credit Card Balance by State LO0Z B00z Cards in Circulation (Millions) Rate Category VYSO