public debt by country 2009
Fall of older people in the pit of debt credit card
Thousands of Americans in need of funds for older persons Advanced form a credit card debt much faster than other consumers in the middle of the harsh reality of reduced retirement portfolio and increased medical costs, according to a recent study.
The study was conducted by Demos, a public policy of the Liberals, showed that consumers of low and middle-aged 65 years and taking an average of $ 10,235 debt credit card. These figures have increased by 26 percent since 2005. From credit card debt rose by an average of 3 percent for all borrowers from 9827 to $ 2005.
The Federal Reserve said that, in general, revolving debt, especially credit card debt, increased during most of 2008. However, as many consumers compare costs, stocks debt also fell. The last quarter of 2008 and through the first quarter of 2009, we saw slides of the overall debt of 2.3 percent to 939.6 billion dollars.
There are now thousands of consumers who use credit cards for necessities instead of luxuries, according to overview Demos, which also shows that over 50 per cent of households state that medical expenses contributed to its growing debt credit card.
"The idea is not frivolous spending that is driving families in crazy amounts of debt, "said Jose Garcia, associate director of Demos." expenditure more families are affecting the cost of living. "
The "Demos telephone survey, conducted between April and August 2008, a total survey of 1205 households with low and moderate income. These families are defined as those with 50 percent to 120 percent of local median income. The margin of error is estimated at 3.7 percent, more or less a small amount.
The results were dead in line with other research in the field, showing that older people are very quickly become the face of a country torn by debt.
According to the Employee Benefit Research Institute (Ireba) a non-partisan group that studies security economic debt of Americans aged credit card has grown at a much faster rate than the general population between 1992 and 2007.
"You can see a significant increase in credit card debt for Elderly people near retirement age," says Craig Copeland, researcher senior associate at EBRI. "They are still working, but are also more likely to become disabled," which is a circumstance that could to depend heavily on credit cards.
In addition, the survey conducted by Demos found that those who have credit card debt also pay more. Nearly one in four households now pay a higher interest rate to 20 percent. Addition, households who were charged late fees made four costs during the period of twelve months, on average.
These interest rates and very high costs that can upend Budgets advocates consumer claim. Sally Hurme of AARP, the group 50 years and older consumers: "When the interest rate rises, is another blow to his ability to earn life. "
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