Answer: A lot!

From Federal Reserve Bank of Boston study:

Other interesting factoids in this study (thanks to Bloomberg for summarizing):

• The 20s are a key age when it comes to credit card debt:

“Between ages 20 and 30, Americans rush to embrace credit-card debt. Their credit-card limits jump about 450 percent in that time, while their debt rises almost as quickly, by more than 300 percent.”

• Almost 2/3 of credit card users are revolvers:

“About 35 percent of those aged 25 to 50 with credit cards are “convenience users,” who pay off their balances each month. The majority, whom researchers call “revolvers,” carry debt forward from month to month and usually pay high interest charges in the process.”

• Importance of habits:

“The study finds that individuals have “very stable” credit habits over time. Some might typically use more of their available credit and others less, but each person’s use of credit cards doesn’t vary much during the course of his or her life. Finances are sometimes disrupted by shocks—perhaps a car repair, a medical emergency, or even a bonus—that do cause people to alter their credit habits. Any disruption is temporary. Within two years, an individual’s credit use is mostly back to its ordinary pattern.”

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Check out the new NGPF Unit on Types of Credit!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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