Changes

Charge cards which required customers to pay the balance in full every month have been in existence since the late 1800s.  The first true credit card was invented in 1958 by Bank of America.  The BankAmericard eventually became so widespread that it was spun off from Bank of America and became the agency now known as Visa.  Credit card use became increasingly popular in the 1960s and 1970s. Before credit cards, travel was more difficult because travelers needed to carry money, purchase travelers checks, or make special arrangements in advance with banks in the cities they were traveling to.  Mail order purchases were made by check, and were very slow, because most companies would wait for the check to clear before shipping the product.

Charge cards which required customers to pay the balance in full every month have been in existence since the late 1800s.  The first true credit card was invented in 1958 by Bank of America.  The BankAmericard eventually became so widespread that it was spun off from Bank of America and became the agency now known as Visa.  Credit card use became increasingly popular in the 1960s and 1970s. Before credit cards, travel was more difficult because travelers needed to carry money, purchase travelers checks, or make special arrangements in advance with banks in the cities they were traveling to.  Mail order purchases were made by check, and were very slow, because most companies would wait for the check to clear before shipping the product.

Today, credit cards are governed by four major organizations: Visa, Mastercard, American Express, and Discover.  Visa and Mastercard allow banks and credit card companies to issue cards for use on their respective networks, whereas American Express (AMEX) and Discover issue and service cards themselves.  144 million Americans have a general purpose credit card, but there are approximately 641 million cards in circulation.  Consumers revolved approximately $904 billion in June 2007<ref>http://www.creditcards.com/statistics/credit-card-industry-facts-and-personal-debt-statistics.php</ref>, although it is estimated that only 55 million Americans pay their credit card bill in full every month, another 35 million pay only the minimum.<ref>http://www.pbs.org/wgbh/pages/frontline/shows/credit/</ref>

Today, credit cards are governed by four major organizations: Visa, Mastercard, American Express, and Discover.  Visa and Mastercard allow banks and credit card companies to issue cards for use on their respective networks, whereas American Express (AMEX) and Discover issue and service cards themselves.  144 million Americans have a general purpose credit card, but there are approximately 641 million cards in circulation.  Consumers revolved approximately $904 billion in June 2007,<ref>http://www.creditcards.com/statistics/credit-card-industry-facts-and-personal-debt-statistics.php</ref> although it is estimated that only 55 million Americans pay their credit card bill in full every month, another 35 million pay only the minimum.<ref>http://www.pbs.org/wgbh/pages/frontline/shows/credit/</ref>

   

   

==Statistics==

==Statistics==

*On average, today's consumer has a total of 13 credit obligations on record at a credit bureau. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time. In fact, one out of four consumers had credit histories of 20 years or longer. Only one in 20 consumers had credit histories shorter than two years.<ref>myfico.com</ref>  

*On average, today's consumer has a total of 13 credit obligations on record at a credit bureau. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time. In fact, one out of four consumers had credit histories of 20 years or longer. Only one in 20 consumers had credit histories shorter than two years.<ref>myfico.com</ref>  

*Average credit card debt per household -- regardless of whether they have a credit card or not -- was $8,329 at the end of 2008. The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008.<ref>Nilson Report, April 2009</ref>  

*Average credit card debt per household—regardless of whether they have a credit card or not—was $8,329 at the end of 2008. The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008.<ref>Nilson Report, April 2009</ref>  

*In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income.<ref> U.S. Congress' Joint Economic Committee, ''Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery'', May 2009</ref>

*In 2007, before the recession began, 14.7 percent of U.S. families had debt exceeding 40 percent of their income.<ref>U.S. Congress' Joint Economic Committee, ''Vicious Cycle: How Unfair Credit Card Company Practices Are Squeezing Consumers and Undermining the Recovery'', May 2009</ref>

*Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004’s $946 to $1,645. Twenty-one percent of undergraduates had balances of between $3,000 and $7,000, also up from the last study.<ref> Sallie Mae, ''How Undergraduate Students Use Credit Cards'', April 2009</ref>  

*Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004’s $946 to $1,645. Twenty-one percent of undergraduates had balances of between $3,000 and $7,000, also up from the last study.<ref>Sallie Mae, ''How Undergraduate Students Use Credit Cards'', April 2009</ref>  

*Average credit card debt among indebted young adults increased by 55 percent between 1992 and 2001, to $4,088. The average credit card indebted young adult household now spends nearly 24 percent of its income on debt payments, four percentage points more, on average, than young adults did in 1992. <ref>''Generation Broke: Growth of Debt Among Young Americans''</ref>  

*Average credit card debt among indebted young adults increased by 55 percent between 1992 and 2001, to $4,088. The average credit card indebted young adult household now spends nearly 24 percent of its income on debt payments, four percentage points more, on average, than young adults did in 1992.<ref>''Generation Broke: Growth of Debt Among Young Americans''</ref>  

*Of the 73.0 percent of families with credit cards in 2007, only 60.3 percent had a balance at the time of the interview; in 2004, 74.9 percent had cards, and 58.0 percent of these families had an outstanding balance on them.<ref>Federal Reserve Survey of Consumer Finances, February 2009</ref>  

*Of the 73.0 percent of families with credit cards in 2007, only 60.3 percent had a balance at the time of the interview; in 2004, 74.9 percent had cards, and 58.0 percent of these families had an outstanding balance on them.<ref>Federal Reserve Survey of Consumer Finances, February 2009</ref>  

*17 percent of American households owe more than they own.<ref> Mishel, Bernstein, Allegretto, 2007. p. 257</ref>

*17 percent of American households owe more than they own.<ref>Mishel, Bernstein, Allegretto, 2007. p. 257</ref>

The abrogation of usury laws and over-extension of debt has been implicated in the present credit card problem. <ref>Time Inc. ''How Americans Got Into a Credit Card Mess'', Aug. 08, 2009</ref>

The abrogation of usury laws and over-extension of debt has been implicated in the present credit card problem.<ref>Time Inc. ''How Americans Got Into a Credit Card Mess'', Aug. 08, 2009</ref>

==See also==

==See also==

[[Category:Technology]]

[[Category:Technology]]

[[category:Economics]]

[[Category:Economics]]