revolving debt

A new report released by the Kauffman Foundation revealed that those startups who rely heavily on their credit cards are more likely to fail at their first year of existence. The research shows that every $1,000 of credit card debt increases the probability that a new firm will close by 2.2%. 59% of the businesses in the survey had no employees when they were founded, and only 18% had three or more, so this applies mainly to microbusinesses.

Demos, a liberal public policy group, conducted s study that polled 1,205 low- and middle-income households, defined as those with 50% to 120% of local median income. The study showed that older Americans with financial difficulties are accumulating their credit card debt faster than other consumer groups as retirement portfolios are being cut down and medical costs are rising.