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Episode Two: Understanding the Credit Card Debt Puzzle: A Conversation with Brianna Middlewood,Ph.D., Decision Scientist, Consumer Financial Protection Bureau
The credit card debt puzzle arises when people hold credit card debt and savings at the same time, because with few exceptions, any money held in savings is not earning interest at the same rate that their credit card debt is earning interest. A typical commercial bank interest rate on a credit card, is roughly 15 percent, while the interest rate on a savings account is near zero. Yet one-in-three people pay for expensive credit card debt by carrying a credit card balance from month to month, despite having excess cash that could be used to pay the debt down. This episode focuses on a CFPB study, Balancing Savings and Debt: Findings from an Online Experiment.
Please note that this interview is for entertainment purposes only, and any opinions or views stated by Brianna Middlewood are her own and may not represent the views of the Consumer Financial Protection Bureau. Her remarks do not constitute legal interpretation, guidance, or advice of the CFPB.
Free CFPB Resources:
My Spending Rule to Live By
My Credit Spending Rule to Live By
Organizing and Managing Finances
Savings Boot Camp
Get a Handle on Debt Boot Camp
View all episodes
By Employee Benefit Research InstituteThe credit card debt puzzle arises when people hold credit card debt and savings at the same time, because with few exceptions, any money held in savings is not earning interest at the same rate that their credit card debt is earning interest. A typical commercial bank interest rate on a credit card, is roughly 15 percent, while the interest rate on a savings account is near zero. Yet one-in-three people pay for expensive credit card debt by carrying a credit card balance from month to month, despite having excess cash that could be used to pay the debt down. This episode focuses on a CFPB study, Balancing Savings and Debt: Findings from an Online Experiment.
Please note that this interview is for entertainment purposes only, and any opinions or views stated by Brianna Middlewood are her own and may not represent the views of the Consumer Financial Protection Bureau. Her remarks do not constitute legal interpretation, guidance, or advice of the CFPB.
Free CFPB Resources:
My Spending Rule to Live By
My Credit Spending Rule to Live By
Organizing and Managing Finances
Savings Boot Camp
Get a Handle on Debt Boot Camp