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Card Debt Struggle

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About 10% of American households with major credit cards are struggling to pay credit card bills. The finding comes from Tampa- based PSI Global which also found that risky cardholders have put off other household payments to meet their minimum credit card payments, have borrowed money to make credit card payments, and have been contacted by credit card issuers because of their late payments. However PSI says the number of cardholders who actually default is about 1%. Based on a study of 2,248 households, PSI concluded that risky cardholders are distributed evenly among all age groups, all education levels and all income levels.

FULL STORY:
Nearly a tenth of American households with major credit cards find it difficult to pay their credit card bills, according to a recent survey conducted by PSI Global. The survey, which questioned a nationally representative sample of 2,248 households, found that these risky cardholders have put off other household payments to meet their minimum credit card payments, have borrowed money to make credit card payments, and have been contacted by credit card issuers because of their late payments.

“Fortunately, only about 1% of the cardholders actually default on their credit card bills,” says Tina Armour, Research Director, “which means that the risk for credit card issuers in general is still fairly low.” It is difficult for credit card issuers to determine who the risky cardholders are since they can be found in all age groups, all education levels and all income levels, Ms. Armour said. It is even more of a challenge to predict which risky cardholders will actually default and won’t be able to pay the bill at all.

PSI Global, an NFO Worldwide company with offices in New York, London, Singapore, Tampa and San Francisco is a leading provider of syndicated consumer and corporate market research, as well as proprietary consulting services for the financial services industry.

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