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Debt statisticsBefore we discuss various aspects related to debt statistics, it is very important for us to first understand what is a debt statistics. Debt in common language denotes loan. Whenever a person, business unit or country takes a loan, debt is created in its favor. Apart from this, debt is also creates when a person or a company owes some amount of money to another person or company. Thus, it can be said that when any person, company, country etc has to pay certain amount to square off account lying with other entity, it can be said that such person, company etc is suffering from indebtedness. As far as debt statistics is concerned, it can be said that debt statistics is a way of collecting and analyzing different types of numerical data related to debt of any person, company, country etc. Needless to say that the debt statistics provide all the relevant debt figures. Let us discuss what figures are depicted by debt statistics.
RELEVANT FIGURES
There are many types of figures that are depicted by debt statistics. One of the most important such figures is the number of persons, companies etc that are indebted. Similarly, the debt statistics also tell about the extent of indebtedness, that is, the money which these persons, companies, countries owe to others. The debt statistics also depicts interest rate as well as figures some times. Apart from other, there is one more figure that is depicted by debt statistics which is percentage increase or decrease indebtedness. In fact this is the figure that is sought mostly by various economists etc. Let us now discuss debt statistics with the help of various examples.
LEARNING BY EXAMPLES
While examples help a person in learning various aspects related to debt statistics, these also provide various information regarding any person, company or country. Let us take the example of United States first. In the present times, one of the most important types of debt by which most of Americans are suffering is the credit card debt. So, let us discuss debt statistics in U.S in relation to credit card. As per the latest data released, the average American Household contains about 13 payment cards and these payment cards consists largely of credit cards. The other types of payment cards are the store cards and the debit cards. As far as the total number of payment cards is concerned, there are about 1.3 billion total payment cards that are there in circulation in America. As far as the credit card purchase is concerned, various persons living in United States made purchases for about $1.4 Trillion. On an average, American carries about $5800 as credit card debt from one month to another. Thus, if a person is required to make only the minimum payment in relation to debt created every month, it would take around 30 years to pay off the total card debt. This would also include about $15000 as interest in those payments. In the year 2000 alone, 302289 people filed for the bankruptcy, as per the American Bankruptcy Institute. Another data that is also useful part of total U.S Credit card debt statistics is that the credit card purchase is about 112% higher than the purchase made by using cash. Thus, it can be said that approximately 40% of US families spend more amount than their earnings.
Given above are the various numerous data relating to credit card debt in United States and thus, it can easily be called as U.S Credit Card Debt Statistics.
Let us now take another example of debt statistics
The total personal debt in United Kingdom stands at about ?1325bn. If a person wishes to compare this data with that of last year, it can be said that there was about 10.4% rise in the personal debt in United Kingdom. The increase was registered at ?114bn. The total secured lending on different types of homes in United Kingdom at the end of April 2007 was about ?1112bn. The rise that was achieved as compared to last year was 11.4%. The total consumer credit lending to different individuals in United Kingdom was about ?213 at the end of April 2007, which was 5.4% more than the figures in the last months. If the total lending in UK is concerned, it can be said that at the end of April 2007, the total lending grew by about ?9.4bn whereas the secured lending grew by about 8.9bn. The average household debt in United Kingdom is about ?8816 and the average debt owed by an adult in UK is about ?28189.
Given above are two examples of debt statistics. After carefully study of both of them, it can be said that there are many conclusions that can be made from the debt statistics. Thus, one of the most important advantages of debt statistics is the analysis that can be done. This analysis is very much useful as many policies are made by various individuals, companies, countries etc on the basis of this analysis only. There are many tools that are used for making analysis of debt statistics.
One of the very important debt statistics that is the external debt statistics of any country. This debt statistics allow a person to know about the total amount by which the country is indebted to other countries and international institutions and organizations. For example, IMF or International Monetary Fund makes loans to many countries, which makes them indebted. Many economists uses debt statistics relating to these loans in order to analyze the overall development made in the country and in repaying the debts. Various sectors that contributed maximum to repayment are also ear marked and then, special policies are made for these sectors.
Thus, it can be said that there are many uses of debt statistics that are made by different professionals, firms etc.
THUS, DEBT STATISTICS ARE VERY IMPORTANT
After going through the above discussion, it can be rightly said that the debt statistics are very important as many types of information are provided by them. A person can easily come to know about the debt trends from the debt statistics and then, relevant policies can be made. Many international rating agencies make use of debt statistics for rating countries, business organizations etc.
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