Many young Americans who pay their monthly credit card balance are actually paying for interest rates accumulated from their previous balance, a recent article in Fortune reported.
According to a study conducted by the Federal Reserve Bank of Boston, many Americans who are in the 25-50 age bracket are primarily paying off the interest of their previous credit card balance. An article from Bloomberg also noted that people who heavily rely on using their credit cards often continue to do so throughout their lives. Additionally, people tend to use more of their credit cards if they are given a high credit limit. For Americans in the 20-30 year old age window, credit card limits have increased by about 450 percent and debt has increased by 300 percent. Boston College Professor Scott Fulford explained that younger Americans often view credit limit as “savings” that they use for emergencies.
At the Bradford Law Offices, PLLC, we understand that many young people get into trouble because of unmanageable credit card debt. If you are in such a situation, we want to help you explore all of the legal options available to you for getting a fresh financial start. Learn more about your options from us by calling (910) 668-0006 today.