How Does Credit Card Debt Affect Your Personal Wealth?

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Credit card debt is what’s known as unsecured consumer debt. Card debt is not necessarily collected through the use of a credit card. Debt can be accumulated from transfers, such as transferring money to make a payment or to another account. This can get you in a cycle of revolving debt meaning, what you owe can spiral out of control. Many people owe money because of the current financial situation of the U.S Economy. Credit card has a major impact on one’s personal wealth. People who have an asset have personal wealth; some examples of an asset are your house as well as your land. Many people may feel if the house burns down or gets destroy in a tragedy, then they have nothing left but that not the case. You still have your land, but asset also come in form of items that may be more personal such as a car, bank account, stocks and bonds or an item of value that has been passed down for generation. There is also a side of credit card debt that is positive; this is what helps you build your credit, so you are able to buy item of a high value. That takes the majority of citizen a long period of time to pay off, such as a car or home. Today’s debt rate is at a staggering high, our nation is recovering from our current financial situation. Ed hall reported the (“U.S. NATIONAL DEBT CLOCK”) it is estimated to be $13,255,286,814,716.47 and the amount is increasing daily according to the (“U.S. Department of the Treasury”). The U.S population is estimated at 308,775,484 by the (“Bureau of the Census”). If you were to distribute the nation’s debt equally throughout every American, each citizen would be $42,928.56 estimated in debt. Credit card debt impact your personal wealth is relevant in today’s society because, Over the pas... ... middle of paper ... ...r accounting. There is also a need for good accountants or accountants that do thing on the good of society or a person, instead of the good of their wallet. If Americas’ advisers were working as hard as some of Americas’ money greed some peoples, they would have found an effective way to build up the U.S economy. Works Cited Hall, Ed. “U.S. Department of the Treasury.” Bureau of the Census, 26 July 2010. http://www.brillig.com/debt_clock/ Hall, Ed. “U.S. NATIONAL DEBT CLOCK” Brillig.U.S. Bureau of the Census, 26 July 2010. http://www.brillig.com/debt_clock/ Ossinger, Joanna. “Credit Card Companies Raising Rates on Consumers.” FoxBusiness. FOX News Network, Mon. 23 Feb. 2009. http://www.foxbusiness.com/story/personal-finance/credit-card-companies-raising-rates-consumers/ http://www.huffingtonpost.com/2010/06/18/free-student-metrocards-s_n_617049.html )

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