1. Credit Cards

2. What Is Credit? Credit is a method of selling goods or services without the buyer having cash in hand Credit is a method of selling goods or services without the buyer having cash in hand

3. Credit Card History Credit cards began in 1951 with Diners Club Credit cards began in 1951 with Diners Club Intended to pay restaurant bills only Intended to pay restaurant bills only

4. First-Time Cards Average balance owed on credit cards: $885 Average balance owed on credit cards: $885

5. Debt Is a Good Thing? The average American households credit card debt in 2007 is $9,840. The average American households credit card debt in 2007 is $9,840.

6. Credit Cards Today In 1968, consumers total credit debt was $8 billion (in current dollars). In 1968, consumers total credit debt was $8 billion (in current dollars). Now the total exceeds $880 billion. Now the total exceeds $880 billion.

7. What Do We Buy? U.S. consumers racked up an estimated $51 billion worth of fast food on their personal credit and debit cards in 2006, compared to $33.2 billion one- year ago. U.S. consumers racked up an estimated $51 billion worth of fast food on their personal credit and debit cards in 2006, compared to $33.2 billion one- year ago.

8. Who Has Them? The average American has four credit cards; up from 3.2 cards in 2004 The average American has four credit cards; up from 3.2 cards in 2004

9. Targeting YOU! More than 40% of 18 – 21 year-olds now own a credit card More than 40% of 18 – 21 year-olds now own a credit card

10. Who Gets Offers? Credit card companies mailed a record $6 Billion in offers in 2005 alone. Credit card companies mailed a record $6 Billion in offers in 2005 alone. That comes to around 20 per every one of 300 million Americans in the US. That comes to around 20 per every one of 300 million Americans in the US.

11. Late Payments? Credit card companies made $43 Billion in late payments, late fees, and balance transfer fees in 2004 Credit card companies made $43 Billion in late payments, late fees, and balance transfer fees in 2004

12. Revolvers 60% of U.S. consumers always (or usually) pay off their bills in full each month. 60% of U.S. consumers always (or usually) pay off their bills in full each month. The 40% who dont pay off their bills each month are called revolvers. In 2007, revolvers paid $18.1 billion in penalty fees to credit card companies. The 40% who dont pay off their bills each month are called revolvers. In 2007, revolvers paid $18.1 billion in penalty fees to credit card companies.