Embarrassed Americans underreport credit card debt by $415 billion



By Erin El Issa

It’s not uncommon to fudge some of life’s most sensitive numbers, such as age or weight.
But according to a NerdWallet study, consumers aren’t just fibbing a little when it comes to their credit card balances. In fact, government data show them reporting a total of $415 billion less than they actually owe.
As of December 2013, lenders reported about $683 billion in outstanding credit card debt, according to the Federal Reserve Bank of New York. Borrowers, on the other hand, reported only about $268 billion when asked for the Federal Reserve’s 2013Survey of Consumer Finances. This disparity was greater for credit card debt than any other type of debt, including student loans and mortgage debt.

When NerdWallet dug into the reasons behind this reporting difference, it found that the stigma surrounding credit card debt may be a leading cause of underreporting.
The stigma of credit card debt
Part of the $415 billion discrepancy can be explained by unintentional underreporting on the part of consumers. They may not know how much debt they have, or they might not be reporting debt they’re planning to pay off in the near future. But based on NerdWallet’s survey results and the significance of the disparity, it seems likely that a large portion of this underreporting is intentional because of the stigma credit card debt carries.
“Read the Full Article at www.usatoday.com >>>>”

Due to the nature of independent content, VT cannot guarantee content validity.
We ask you to Read Our Content Policy so a clear comprehension of VT's independent non-censored media is understood and given its proper place in the world of news, opinion and media.

All content is owned by author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners or technicians. Some content may be satirical in nature. All images within are full responsibility of author and NOT VT.

About VT - Read Full Policy Notice - Comment Policy