Crack Down on Credit Card Debt

June 11, 2008 — -- Amanda McCormick is, like many college seniors, focused on school and work. But what people don't see is her heavy financial burden.

Like so many other university students —and Americans in general — McCormick is racked with credit card debt. She was hooked on paying with plastic, perhaps bordering on an addiction.

"I am 21 years old, and I have more debt than the average American family," she said. "The future for me has a lot of debt, basically. That's what the future is. I'm just trying to get out of it while I can, while I'm still remotely young."

She works three jobs to help decrease her financial obligations, but McCormick still is drowning in $22,000 of credit card debt that has only gotten worse over time.

"I am working so much and I don't see a dime of the money," McCormick said. "It encompasses my life, so in a way it is an addiction. It is everything I think about all the time."

Good Morning America worked in partnership with The Wall Street Journal's Marketwatch to address a growing trend among America's consumer culture - credit card addiction.

Her story is similar to Paula and Andy Frederick, who recently celebrated their 20th wedding anniversary. The pair opted not to have any fanfare to mark the momentous occasion because of their bills.

The Fredericks have accumulated $40,000 in debt on 15 different credit cards.

"They just make it so easy. The introductory rates are 0 percent," Paula said.

As their debt grew, their money troubles began to consume their every thought.

"I couldn't sleep at night. I started to get sick," Andy said.

So the Fredericks opted to get help with their finances and looked to their pastor for help.

"We knew if we were going to step out and reach for help that our church family was going to support us and encourage us and hold us accountable through the process. Whereas if I reached out to family or friends, I was afraid of being judged or ridiculed," Paula said.

Across the nation people are finding themselves saddled with debt, much of it on credit cards with increasingly high interest rates.

"The typical American has $9,800 in credit card debt and to put that in perspective — [that is] way more than the rest of the world. The average person in the UK has $5,500; typical German $3,500 average Italian $1,200. We are way overboard walking around with six credit cards in our wallet, five more than we need," said "Good Morning America" financial contributor Mellody Hobson.