Americans Wise Up About Credit And Debt

The majority of adults know their credit score (69%) and credit card interest rates (83%), according to Lending Club. This is an improvement compared to pre-recession 2007, when 45% did not know their credit score, and 29% did not know the interest rate on their most often used credit card.

While most credit card users (93%) are aware they can negotiate for lower interest rates, only 29% have tried. The majority (63%) carry cards with an interest rate of 14% or higher, and 31% have cards with a rate of 20% or higher.

Nearly nine in 10 adults (87%) have debt other than a home mortgage. Of those, 67% have credit card debt, and 48% have auto loan debt. Nearly a quarter (24%) owe $20,000 or more. Young adults aged 18-34 (93%) are more likely to have debt than those aged 55 and older (83%). However, credit card debt is more common among those aged 55 and older (73%) than those aged 18-34 (60%). More than a quarter of 18-34 year olds plan to take out a loan in the next six months. They intend to use the money to:

Buy a car (37%);

Pay for education expenses (32%); or

Buy or refinance a home (22%). [Finance]

Source: “Consumer Credit Survey,” Lending Club, 370 Convention Way, Redwood City, CA 94063; 866-754-4094; pr@lendingclub.com; www.lendingclub.com.

© Copyright 2011, EPM Communications, Inc. May not be reproduced without written consent of publisher.

Leave a Reply

Your email address will not be published. Required fields are marked *