Is Credit Card Debt a Taboo Subject?
Surveys show that Americans would rather talk about the intimate details of their love lives than their credit. They were also more likely to bring up the subjects of death, rent or mortgage payments, their salaries, and their weight than the subject of their credit card debt. This begs the question: Are we dodging the subject because it’s embarrassing, or because we’re not really sure what we’re talking about where credit is concerned?
Other recent studies showed some discouraging numbers regarding what we know – and don’t know – about credit. 82% of Americans avoid discussing the topic whenever possible. 31% believe that credit scores reflect a person’s income level, age, and marital status rather than their payment history. Most know that making late payments hurts a credit score, but many don’t realize that maxing out one’s credit cards has the same effect.
Washington Mutual recommends that all card holders pay down their debt and check their credit report on a regular basis. They also suggest that card holders avoid coming anywhere near their credit limit on any card. A low debt-to-credit ratio will improve credit scores and decrease credit card finance fees.
