Adults With Higher Education Have Higher Credit Card Debt


A recent study surfaced on most financial publications in the credit card news section. The study mostly crunched the numbers and revealed a surprising conclusion. According to the findings, adults with higher education have considerably more credit card debt than credit card users that just finished high school.

The reason as to why this is happening requires a deeper look at how people manage their money. College graduates are indeed less likely to have credit card debt but when they do, it racks up much higher than for people in the lower educational bracket.

According to credit card news websites quoting the study, this phenomenon happens for several reasons. Adults that have some sense of financial education are less likely to get into credit card debt. As they usually have a higher income, they also qualify for higher limits. Adults that may not have higher education and have a lower income, have lower limits thus they cannot get $8,000 of debt when their limit may be just $2,000.

What the study observed is that most people in the higher income bracket are more likely to get into debt to fund their lifestyle. This type of behavior has triggered reactions from financial advisors that claim to be a habit that can cripple the financial security of an individual even if they have a high income.

Some credit card news sites emphasized that many banks incentivize spending which further deepens the problem. Surrounded by so many incentives to spend, even the adults in the higher education bracket start making wrong decisions when it comes to using credit cards. What the study observed is that the people that make the most out of credit card rewards and stay out of debt do not belong to just one educational bracket. As financial education is so much easier to access, most adults began being more aware of their spending regardless of their income bracket or education.