A recent report stated that $9,000 was the average American’s credit card debt. This figure made some consumers feel great - we are not alone. The figure also made families with no credit card debt comfortable with their decisions. Unfortunately, no matter what consumers felt about the reported $9,000 of average debt it is untrue.
Consumers are in denial over their debt
One survey says that 90 percent of consumers are unwilling to admit the extent of their credit card debt. Further research into this high figure is beginning to show economists may have misconstrued figures.
Let’s look at some actual facts that can be substantiated: the majority of American households do not have consumer credit card debt. In fact, the Federal Reserve reports that one-quarter of homes have no credit cards and thirty percent pay off their balance each month.

For consumers who owe money, the figures are also less frightening than normally reported. While thousands of people owe on credit cards, the average amount owed is $2,200. This is a far cry from the $9,300 reported in the GK Roper Study.

These figures will most likely be higher in the year to come as new data is released. The above figures are from 2004, the latest year numbers are available. New figures are coming in right now and economists are currently attempting to determine new means and medians.
In 2001, the average consumer credit card debt owed by consumers with credit card debt was $1,900. This is close to the 2004 figure of $2,200. However, experts expect figures to raise dramatically this go-round due to economic hardships.

Will a ‘cleaned up’ poll help?

Economists do not think cleaning up the numbers will have much of an impact because averages are too easy to skew. The small percentage of consumers with large credit card debt skews the mean for all consumers, no matter what the amount of their credit card debt.

There are several reasons to take notice when you see these figures that are blatantly false. First, they make you feel less than worthy. The reports leave give the impression that every American has 4 or 5 credit cards with high balances.

It is unpleasant to hear inaccurate reports on consumer credit card debt on news reports and see them in newspapers knowing they are skewed. National policy about consumer debt is distorted because the figures concerning consumer debt are inaccurate.

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