SUNDAY SPOTLIGHT: FINANCIAL LITERACY: JUST THE FACTS

Americans’ credit card debt

1989….$211.2 billion

1992….$278.5 billion

1995….$443.9 billion

1998….$581.1 billion

2001….$716.7 billion

2004….$800 billion

2006….$876.4 billion

Source: Federal Reserve

Trillions in debt

American consumers are in debt to the tune of $2.6 trillion, having borrowed an additional $14.3 billion in June, the Fed said. Revolving credit alone (credit cards, mostly) came in just under $1 trillion in June.

Interchange fees

Didn’t know about those? The National Retail Federation, which dislikes interchange fees, reports that the credit card companies take about 2 percent of every credit or debit card transaction. That means the store pays Visa or MasterCard $2 for $100 worth of groceries that you put on your card. And guess where the store gets that $2? It’s quietly factored in to your eggs, milk and grits. The federation says interchange fees will cost the average American family $427 this year and will total $48 billion.

And all those other fees

Here’s a rundown of fees that credit card companies may charge:

> Annual fee. For having the card.

> Cash advances. May be a flat fee or a percentage of the cash advance (for example, 3 percent).

> Balance transfers. Charged when you transfer a balance from another credit card.

> Late payments. Average $35 (in 2007), regardless of your balance. The average late fee in 1994 was $13.

> Over-limit. Charged if you go over your credit limit.

> Credit-limit increase. Charged if you ask for an increase in your credit limit.

> Setup. Charged when a new credit card account is opened.

> Returned checks. Charged if you pay your bill by check and the check bounces.

> Other fees. Some companies charge you if you pay by telephone (that is, if you arrange by phone for payment to be transferred from your bank to the company) or to cover the costs of reporting to credit bureaus, reviewing your account or providing other customer services.

Sources: Federal Reserve, New York Times

Who’s foreclosing

Foreclosure leaders in metro Atlanta in July:

Fulton……1,804

DeKalb……1,414

Gwinnett….1,295

Cobb……….773

Clayton ……710

WHERE THEY STAND

“You know, it’s interesting that if we want America to be as hopeful a place as it can be, we want people owning assets. We want people investing. We want people owning homes. But oftentimes, to be able to do so requires literacy when it comes to financial matters.”

—- President Bush, announcing his advisory council on financial literacy in January

“And one of the most important lessons we must face in today’s society: I did not think I could have it all without working for it, simply because someone had sent me an application for a credit card.”

—- Braun Mincher, author, “The Secrets of Money: A guide for Everyone on Practical Financial Literacy”

“In light of the problems that have arisen in the subprime-mortgage market, we are reminded of how critically important it is for individuals to become financially literate at an early age. … Choosing a credit card, saving for retirement or for a child’s education, or buying a home now requires more financial savvy than ever before.”

—- Ben Bernanke, chairman, Federal Reserve, April 2008