|
Well-Off Not Immune to Credit Card Debt |
|
|
|
|
Written by Administrator
|
|
Saturday, 19 July 2008 |
An attorney with a six-figure salary, Will Chen thought credit card debt was something that only affected people with low-paying jobs. But when the lavish spending inspired by his new job outpaced his paychecks, he quickly fell $100,000 into debt.
Credit card debt
Credit-card debt is becoming even more prominent in the struggling state of the economy. The average amount per consumer rose to $6,900 in the last year, a 21 percent increase, according to Experian, a global information services company. The average number of past-due accounts also increased to exceed more than one per consumer.
And it's not just those with low salaries who are susceptible.
Not Just the Usual Suspects
One common misconception is that credit card debt doesn't affect upper-income households, said Greg McBride, senior financial analyst for Bankrate.com.
"It's not a function of household income, it's a function of household spending," he said. "People of all walks of life have been either guilty of overspending or the victim of some misfortune such as a job loss, an illness or a divorce." Debt from Divorce
 |
Subscribe to this comment's feed