Statistic & Samples
Debt Overview:
The statistics about debt reveal one startling truth: Americans increasingly find themselves in debt. The reasons for consumer debt include medical bills, loss of income, divorce, or excessive spending. Yet regardless of why consumers find themselves in debt, they eventually feel pressure and stress, which can affect their mental health, their job performance, and their family relationships. 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center according to The Wall Street Journal. Credit card debt $865 billion in 2009.
| Starting Balances * | Starting Minimum Payment * |
Interest Rate | Years to Pay Off | Total Paid |
| $10,000 | $250 | 18% | 28.5 years | $24,423 |
| $20,000 | $500 | 21% | 44.6 year | $65,707 |
| $30,000 | $750 | 24% | 71.8 years | $148,219 |
| * Banks will lower the minimum payment as the account balance decreases. | ||||
Unfortunately, most people don’t learn about making wise financial decisions in school, and many parents don’t warn their children about the risks of debt and the importance of good credit. And even if we do learn those important financial lessons, the ease of obtaining credit cards can be just too tempting. The amount of fees and interest people actually pay when they make minimum payments on their credit cards, however, might surprise you:
As the previous chart shows, a $10,000 purchase can turn into a $24,423 expense – and require 28.5 years of monthly payments.
Fortunately, Americans have options for dealing with their credit card debt. With the Financial Consulting Services Plan, we can help you transform your financial situation with solid advice and a proven debt negotiation and payment strategy.
Debt Statistics:
When you found yourself overwhelmed with personal debt, you probably felt incredibly alone – and a bit embarrassed. Debt just isn’t something people feel comfortable talking about, so they try to hide their situation. Statistics show, however, that while people may not be talking to their friends about debt they are certainly experiencing it in record numbers.
- The average American carries $8,562 in credit card debt.*1
- In May 2002, U.S. consumer debt surpassed disposable income.*2
- Approximately 35 million Americans pay only the required minimum payment on their credit cards each month, often as low as 2 percent of the balance.*3
- A 2007 survey of Americans showed nearly half of Americans say losing ten pounds would be very or somewhat difficult for them in 2007, while 31% say paying off all their credit card debt would be difficult.*4
- More than 40% of Americans with atleast one credit card have a credit card that is within 5% of its credit limit.*5
- Credit experts expect the amount of bankruptcy filings to return to their pre-2005 (pre- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) levels in 2007.*6
- Two-thirds (65.7%) of 4-year undergraduate students graduate with some debt. Those students leave college owing an average student loan debt of $19,237 (excluding PLUS Loans but including Stafford, Perkins, state, college and private loans).*7
- Motley Fool
- The Bureau of Economic Affairs
- Frontline, PBS
- TransUnion and Roper
- The Pelorus Group, "Stored Value: 21st Century Currency"
- The National Association of Consumer Bankruptcy Attorneys, “Bankruptcy Law Anniversary Survey”
- 2004 National Postsecondary Student Aid Study (NPSAS)
The Financial Consulting Services Plan is simple. The following four examples show the great results our team has achieved:
Example 1:
This customer paid 55.81% of their original account balances, not including program fees, and now has a ZERO BALANCE DUE on these accounts.
| Creditor | Original Amt. Due | Settlement Amount | Amount Saved |
| Wells Fargo | $1,179.00 | $526.92 | $652.08 |
| First National Bank | $1,344.00 | $751.00 | $593.00 |
| Palisades | $3,441.00 | $2,274.43 | $1,166.57 |
| GE Money | $4,454.00 | $2,262.21 | $2,191.79 |
| Total | $10,418.00 | $5,814.56 | $4,603.44 |
Example 2:
This customer paid 58.19% of their original account balances, not including program fees, and now has a ZERO BALANCE DUE on these accounts.
| Creditor | Original Amt. Due | Settlement Amount | Amount Saved |
| GM Card | $9,183.00 | $4,219.00 | $4,964.00 |
| Wachovia | $6,962.00 | $3,275.00 | $3,687.00 |
| Capital One | $2,773.00 | $2,345.00 | $428.00 |
| First USA | $12,529.00 | $7,320.81 | $5,208.19 |
| AT&T | $8,853.00 | $6,241.00 | $2,612.00 |
| Citicard | $7,611.00 | $4,479.00 | $3,132.00 |
| Total | $47,911.00 | $27,879.81 | $20,031.19 |
Example 3:
This customer paid 47.31% of their original account balances, not including program fees, and now has a ZERO BALANCE DUE on these accounts.
| Creditor | Original Amt. Due | Settlement Amount | Amount Saved |
| MBNA | $20,448.00 | $5,000.00 | $15,448.00 |
| Chase | $14,722.00 | $7,605.00 | $7,117.00 |
| RBS | $3,521.00 | $2,020.00 | $1,501.00 |
| Chase | $25,433.00 | $13,435.00 | $11,998.00 |
| FIA | $20,279.00 | $8,213.72 | $12,065.28 |
| Discover | $4,736.00 | $3,744.00 | $992.00 |
| M & T Bank | $7,880.00 | $5,881.93 | $1,998.07 |
| Total | $97,019.00 | $45,899.65 | $51,119.35 |
Example 4:
This customer paid 35.63% of their original account balances, not including program fees, and now has a ZERO BALANCE DUE on these accounts.
| Creditor | Original Amt. Due | Settlement Amount | Amount Saved |
| Bank of America | $14,723.00 | $5,000.00 | $9,723.00 |
| Alliance One | $10,749.00 | $4,075.00 | $6,674.00 |
| Total | $25,472.00 | $9,075.00 | $16,397.00 |
