The FICO surveyors found that credit card debt is rising for two reasons. First, wealthier people are feeling more confident so they are spending more freely, which adds to their credit card balances.
And second, poorer people are feeling more squeezed so they can’t afford to pay off their balances in full. Wage increases have been virtually nonexistent in 2011, and more than 14 million people are still looking for jobs. So for a lot of households, credit card balances are rising because the families can only afford minimum payments each month, which is allowing interest costs to pile up.
What this means, of course, are that the wealthy are getting wealthier and the poor poorer and the wealthy are NOT spending to create jobs but are spending on their own luxuries.
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Interesting. I went through the last few FICO surveys, and found nothing pertaining to the wealth of credit users.
You're ...
- I see. They're editorializing just because you don't agree with their conclusions. Had you agreed with their conclusions, ...