Debt Can Be Managed Wisely
|
TOOLBOX
   Resize
COMMENT
 Discussion Policy
 CLOSE
Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.
Who's Blogging  |
Michelle Singletary's March 4 Business column, "A Horror Movie for Our Times," was right to focus on the issue of debt in America. As Ms. Singletary pointed out, the best debt is no debt.
However, some form of debt is a reality for most Americans today, whether that debt is used to get a college education, buy a home or cover unexpected medical emergencies. When it's used wisely, debt can even prove to be a benefit.
Interestingly, credit card balances comprise only about 3 percent of the debt carried by an average American household. Unfortunately, a small minority are unable to manage that debt. Yet more than half of Americans pay their balances in full each month. Still there is room for improvement.
The credit card industry has actively focused on providing financial literacy education to consumers of all ages and income levels. Such programs provide crucial information to those for whom the concepts of credit and debt are new, and they provide manageable solutions for people who may find themselves heading toward or in financial peril.
EDWARD L. YINGLING
President and CEO
American Bankers Association
Washington
