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>It is difficult to evaluate credit card debt because credit cards have increasingly become the substitute for cash in the United States. How much of the debt i
by graeme 10y ago
>It is difficult to evaluate credit card debt because credit cards have increasingly become the substitute for cash in the United States. How much of the debt is extremely short term and essentially represents what used to be cash transactions?
Indeed, I've often wondered this. If someone has an average $3000 credit card balance that they pay off in full when due, are they listed as having $3000 in consumer debt on account of that?
- sokoloff 10y agoThat's exactly how it shows on my credit report, so I'd assume "yes". (Source: I'm refinancing my house, so I happen to have a recent credit report pulled as part of that.)
- pps43 10y agoYes. The credit bureau just shows the balance. Card issuer knows whether you are a transactor (pay the entire balance each month) or revolver (carry over some of the balance and therefore pay interest on it). This is a strong risk predictor.
- e12e 10y agoShould be possible to look at interest paid on credit card loans to better judge this?