by Patricia Reaney, Reuters
American credit card holders in their late 20s and early 30s have more debt than older consumers, repay it more slowly and risk dying in debt if they don’t curb their spending habits, a new study showed on Monday.
Researchers that people born between 1980 and 1984 have on average $5,689 more debt than their parents had at the same stage of their lives, and $8,156 more than their grandparents.
“If what we found continues to hold true, we may have more elderly people with substantial financial problems in the future,” said Lucia Dunn, a co-author of the study and a professor of economics at Ohio State University.
“Our projections are that the typical credit card holder among younger Americans who keep a balance will die still owning money on their cards,” she added in a statement.
Dunn, and Sarah Jiany, of Capital One Financial in McLean, Va., and a co-author of the study, analyzed two large monthly surveys which included data on borrowing and repayment, enabling them to estimate when Americans will be able to repay their credit cards.
The findings were published in the journal Economic Inquiry.continue reading »