Credit Card Debt Facts and Video Illustration
Credit card debt is one of the most stubborn debt that you will ever have in your life. Yet getting buried in credit card debt is rather simple.
Credit card penetration in the Philippines accounts for 7.46% of the population, this equates to 7.36 million credit cards in circulation of the archipelago’s 98.7 million population (source: Eurmonitor 2012). And in reality 7.36 million Filipinos do not own a credit card, some own at least 2 or more cards.
According to the Credit Card Association of the Philippines, only 55% of these credit card holders pay in full each month, and the rest either resort to paying only the minimum amount or whatever they can to pay off credit card dues or even credit card debt. It is an open secret that the Philippines has one of the highest credit card interest rates (2.5-3.5% interest per month) in the world and having to pay the minimum amount of your credit card dues will take you decades to pay it off completely, you are more likely to pay in an average 10x more what you originally owe the credit card company. You can view our article on how credit card transactions work to provide you with more information.
Malaya, in a study it conducted in 2008 concluded that 15% of Filipino credit cardholders defaults its credit card debt, which is three times higher than our Asian neighbors, this hold true until today. Here is a video to help beating out your credit card debt.
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(video credits: TotalDebtRelief)