How Badly in Debt Are We?

The average US household has a credit card balance of $9,000. That’s what we hear. America is drowning in debt.

But Liz Pulliam Weston at MSN says: Wait a minute. First of all, she writes, most Americans owe zero to the credit card companies. Half of those that do owe money have a balance of less than $2,000.

So where does the $9,000 number come from?

Well, it seems to be concentrated up in the high income sector. For instance, Fair Isaac reports that 15 percent of card holders have balances in excess of $10,000. If that is so then it could be that a few rich folks are the ones that are skewing the average.

All in all, Weston reckons, there is

more than enough evidence to suggest that a large number of people are overdosing on debt. The average American, though, seems to be doing just fine.

But if that is true then there’s no need for politicians and moralists rush out and do something before the nation drowns itself in debt. At least not yet.