The only thing we have to fear is fear itself

A recently Survey of Consumer Finances revealed these statistics about America’s financial state.

The typical American family makes about $45,000 per year. From 2001 to 2004, family debt increased 30%. Little of this debt comes from unnecessary spending. Instead, credit is being used to pay for necessities like housing, household expenses, and health care, particularly in low- and middle-income families.

Average net worth rose only 1.5% between 2001 and 2004 for the average American family. In other words, the worth of our investments is not keeping up with the rate of inflation.
The middle class is being squeezed tighter then ever. Among the wealthiest 10% of Americans, net worth rose to $831,600 in 2001. That is a 6.5% increase. Meanwhile, those at the bottom 25% fell 1.5% to $13,000.

More than a third of those who owe more then $10,000 on their credit cards have household incomes under $50,000. 13% who owe that much have household incomes under $30,000. The percentage of disposable income to pay debts is near record high.