US Credit Card Habits Go Global
One of America’s biggest exports is its culture. The country’s food, movies and music often can be found across the globe.
And now, it seems, so can American spending habits.
CNN International looks at the changing face of credit card use in China. Previously, Chinese citizens were models of savings. According to CNN, residents there, on average, saved “40 cents of every dollar of disposable income is saved, compared to 3 cents of every dollar in the U.S.”
But as a new generation comes of age with a new Chinese economy, these habits are changing. Check out these numbers from the CNN report:
- Credit card issuance is up 32 in the last year
- Credit card debt is up more than 130 percent in the last year
- Consumers more than two months behind on credit card debt rose 133 percent in the last six months
What has some financial experts most concerned, though, is how Chinese law handles deep debt.
The law in China does not contain any Chapter 7 bankruptcy provisions, just payback or prison. From CNN:
“If you cannot pay it back you either have to go to parents or friends to pay back for you, or you got to jail,” said Yeongwen Chiang, a consumer expert.
Here in the United States we have multiple personal bankruptcy options. It’s a freedom we may not often think about or be thankful for. But when compared to the alternatives, it can be comforting to know that serious debt relief is available to those truly in need.