25 Fascinating Facts About Personal Debt
By Paul Bannister

Debt. It's been a problem for almost everyone at some time, from the ancient Greeks to modern movie stars.

Throughout history if you didn't have the drachma, you literally could be enslaved by your debt, and you'd become the property of your creditor.

About 200 years after the first Olympic Games, ancient Greek lawmaker and statesman, Solon, changed that for his countrymen, outlawing debt bondage and canceling all outstanding debt at that time -- a highly popular move for those with rash spending habits, even before credit cards.

Today, many Greeks are wondering if the old sage will bail them out of $6 billion in debt the country has racked up to host the 2004 Olympics

If you think those debt numbers are amazing, consider these:

Some 1.6 million U.S. households -- one of every 73 -- filed for bankruptcy in 2003.

There are roughly 1.2 billion credit cards in use in the United States.

The original Diners Club card was issued in 1950 to let businessmen charge meals. It was pasteboard with a list of the 27 restaurants that accepted it printed on the back. The first plastic card came out in 1955. Today, there are about 20,000 different cards available in the U.S.

Studies show the average consumer is exposed to more than 3,000 marketing messages every day. In the last decade, it's been estimated, solicitations jumped from 1.52 billion annually to 4.29 billion.

Today roughly 24 percent of personal expenditures in this country are made with credit and debit cards.

Average per household debt in the U.S., not counting mortgage debt, is about $14,500 -- especially noteworthy because before the 1930s, most middle and working class people had no major debts. Banks would not lend to them; they rented their homes and if they did own a house, it was paid for as it was being built.

A typical credit card purchase ends up costing 112 percent more than if cash were used.

A $1,000 charge on an average credit card will take almost 22 years to pay, and will cost more than $2,300 in interest ($3,300 total) -- if only 2 percent minimum payments are made.

Some 40 percent of American families annually spend more than they earn.

About 60 percent of active credit card accounts are not paid off monthly.

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