New Consumer Report Shows Credit Card Debt is Down Signficantly
The survey, conducted in July by the Consumer Reports National Research Center also shows that consumers are carrying less credit card debt, with median balances of $3,793— $1,100 lower than in 2009.
In addition some 23 percent of respondents said they were motivated to pay off their credit cards faster by the Minimum Payment Warning on their bills mandated by the Credit Card Act of 2009. The warning shows cardholders how long it would take to retire their debt and the total amount of interest they must pay if they made only the minimum payment each month.
Of the people who carried a balance, 23 percent owed more than $10,000 (down from 30 percent last year). Still, 18 percent said they wouldn’t be able to handle their expenses for six months without credit cards; 19 percent said it would take longer than two years to pay off their balances; and 20 percent didn’t know when they’d be able to.