If two people spend $10k a month, and person A puts it all on credits cards that they pay off every month without accruing interest, while person B uses physical dollar bills…
Does person A “accumulate” $120k per year in credit card “debt?”
It would, but I don’t think that data is available. AFAIK, the closest we have is “credit utilization”, but it’s misleading because someone who pays their credit card bills in full each month (and never owes interest) could have a similar “credit utilization” as someone who only pays the minimum amount and accrues a large amount of interest.
I don’t think I understand the metric.
If two people spend $10k a month, and person A puts it all on credits cards that they pay off every month without accruing interest, while person B uses physical dollar bills…
Does person A “accumulate” $120k per year in credit card “debt?”
Yup. A more interesting metric would be lifetime credit card interest.
It would, but I don’t think that data is available. AFAIK, the closest we have is “credit utilization”, but it’s misleading because someone who pays their credit card bills in full each month (and never owes interest) could have a similar “credit utilization” as someone who only pays the minimum amount and accrues a large amount of interest.