A statistical approach towards the credit card debt

The credit card debt has been an extremely important part of the billions of money that has been created all over the world over the past century. The financial crisis of 2008 has dealt with the credit card debt along with the expenditure of the consumers. Along with this, the slow growth has helped the revolving debt not to reach the levels of crisis but this has been creeping up for the last few years. The average credit card debt can be defined on the basis of two things- how one defines the credit cards and count of population which is carrying the card.

More about the average credit card debt

The amounts of the average credit card debt are increasing steadily over a prolonged period of time. People born today will be having much more credit card debt than their grandparents and parents did at their time. For the last few years, the trend of this particular growth has been reversed due to the Great Recession. The average credit card debt for every borrower fell from the zenith in the first quarters of 2014 which was the lowest in a period of six years. This average credit card debt started having a rise in the second quarter of the year 2014.

Transactors and revolvers

The people of the world are divided into two categories by the issuers of the cards. The ‘transactors’ are those people who purchases and repay the balances every month with their credit cards. On the other hand, the ‘revolvers’ are those who have the habit of carrying their balances on their credit cards paying the charges of interest every month. To the transactors who act in a pure manner, the balances that they have on their credit cards are not at all debts for them as any purchases that are done will get paid before the charges of interest get applied. Since the year 2009, there has been a steady decrease in the number of revolvers.

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The credit card debt and the students

A brake has been put by the judiciary on the use of the credit cards by the college students. For using the credit cards, it is a must for the college students to have a co-signer who is an adult. They should also be able to prove that their income is sufficient for clearing the payments of their bills. It is a fact that the students of the present generation manages in racking up the credit card debt. If we take a look at the grade level, we can see that the average balance which is the lowest is carried by the sophomores while the highest is carried by the seniors and the freshmen. The average balance also varies with the school which is attended by the students of a particular region.

It has been seen that the credit cards often become a mode of financial safety for the people of the low and the middle income group. This cards are utilized by them on the basic necessities of life as they do not hold enough balance in the accounts of their bank.