Survey: Lack of education goes with credit card debt
By Juan Rodriguez and Laura Mohammad | Published: May 20, 2014
Households without credit card debt tend to be more educated than those with credit card debt, according to "The Debt Disparity: What Drives Credit Card Debt in America," a study released May 1, 2014, by public policy organization Demos.
Nearly half (47 percent) of the households that include at least a bachelor's degree have no credit card debt. Just 27 percent of such households do have credit card debt. That's the only educational group in which no-debt households outnumber have-debt households.
Compare that to households where a high school degree is the highest educational level. In them, 27 percent report having no credit card debt, while 38 percent do have card debt.
Why the discrepancy?
Demos surmises that financial literacy may increase with education, or perhaps education provides resources that gives the consumer access to jobs more quickly.
For Demos' study, Knowledge Networks surveyed 1,997 households in February and March 2012, with 997 households reporting that they carried credit card debt for more than three months and 1,000 households reporting that they had credit cards but no credit card debt at the time of the survey. The study examined data on adults up to 65 years old. Its margin of error is plus or minus 4.4 percentage points on households with credit card debt, 5.3 percentage points on households without debt.
To use the graphic on your site, use the following code:
- Breaking the budget to go on vacation – Millennials most likely to take on debt for a summer experience ...
- Infographic: How many households have at least one card? – Your annual income and education level may indicate the chances of whether or not your household has a credit card ...
- Infographic: In divorce, women's credit suffers more – More than half of recently divorced women said their credit score tanked during marriage, compared to just 42 percent for men ...