Debt Consolidation Facts

• Over the last five years the number of people in debt and the number of bankruptcies filed has steadily increased. 
  More than 40% of all American families spend more than they earn.
  Most American families use 5 or more credit cards (to buy every day expenses).
•  Many families are only two or three pay checks away from bankruptcy.
•  There were almost two million bankruptcies filed in 2001.
•  One out of three people you see is having trouble managing their debt.
•  Many Americans file Bankruptcy unnecessarily.
•  Many with less than $25,000 worth of unsecured debt.
•  The average amount of unsecured debt the average American has is about $8,500.
•  The average American has between 5 and 8 credit cards.
  It will take 15.6 years to pay off $8,500 with an interest rate of 10.5% and just making a 3% minimum payment of $255.
  It will take 18.9 years to pay off $8,500 at a 15% interest rate paying $255.
•  It will take 24.25 years to pay off $8,500 at 20%.
  The average American is just paying the minimum payments.
  The credit card companies based the minimum payments on 1.5% to 5% of the total amount of your debt.
  The credit card companies can raise your interest rates at any time.
•  Interest rates can go up to as much as 42%.
  The average savings account interest rate is 3.5% or less.
  The prime rate is less than 5%.
  Applying for new credit hurts your credit history.