AARP Bulletin Survey on Budgeting and Credit Card Use
The AARP Bulletin commissioned a nationwide survey in February 2012 to learn whether individuals are following a monthly budget and how they are using their credit cards and managing any credit card debt.
Key findings from the survey include the following:
- Seven in ten respondents (70%) report that they have a monthly budget that they try to follow. Three in ten (30%) say that they do not follow a monthly budget.
- Among those who say that they do not have a monthly budget that they try to follow, the most common reason for not following one is that “it’s not worth my time” (23%).
- When respondents were asked how many credit cards they have, one-fifth (20%) report having only one credit card, and a third of respondents (33%) say that they have two to three credit cards. A fifth (20%) report that they own four or more credit cards. About a quarter (26%) say that they have no credit cards.
- Respondents ages 50 and over (27%) are more likely than those ages 18 to 49 (16%) to report that they have four or more credit cards.
- Respondents ages 18 to 49 (34%) are twice as likely as those ages 50 and over (16%) to say that they have no credit cards.
- Respondents ages 50 and over (27%) are more likely than those ages 18 to 49 (16%) to report that they have four or more credit cards.
- About half of those who report having two to three credit cards actually use two to three cards each month (49%). Interestingly, the majority of those who report having four or more credit cards (68%) say that they use only two to three cards each month.
- When thinking about the credit card that they use most often, results show that almost three in five respondents (58%) pay the full balance each month. About a third (32%) say that they pay less than the full amount but more than the required minimum balance. Less than one in ten (8%) report that they pay only the minimum amount.
- Respondents ages 50 and over (65%) are more likely than those ages 18 to 49 (52%) to say that they pay the full amount each month.
- Respondents ages 50 and over (65%) are more likely than those ages 18 to 49 (52%) to say that they pay the full amount each month.
- Among respondents who pay only the minimum balance each month, the majority of respondents (60%) think that they will be able to pay off their current balance by making monthly minimum payments.
- Respondents who have at least one credit card use their credit card(s) to make purchases or payments for a number of items. About two-thirds of respondents (67%) use their card to buy clothing. About three in five use their credit card to buy gas (64%), go out to eat (64%), or travel (62%).
- Respondents ages 50 and over are more likely than those ages 18 to 49 to use their credit card for travel (68% vs. 55%), clothing (72% vs. 62%), home maintenance (39% vs. 28%), or car maintenance (54% vs. 40%).
- Respondents ages 50 and over are more likely than those ages 18 to 49 to use their credit card for travel (68% vs. 55%), clothing (72% vs. 62%), home maintenance (39% vs. 28%), or car maintenance (54% vs. 40%).
The survey was conducted for AARP by ORC International using its online omnibus survey service. Interviews were conducted from February 23 through February 26, 2012, among a nationally representative sample of adults ages 18 and older. For additional information contact Lona Choi-Allum at 202-434-6333.