Most 'Mass Affluents' Still Paying Credit Balance

  • by March 30, 2009
credit card A Mintel study found that 55% of Mass Affluents have cut down or deferred overall spending due to the recession. Only 48% say they currently "feel financially secure." That figure is just 36% of Hispanic Mass Affluents. Mintel noted that the Mass Affluents rely on credit cards for more than half of all their purchases, and as might be expected, spend "significantly more" than the average consumer.

More than three-quarters (78%) of U.S. households earning between $100,000 and $1 million -- dubbed the "Mass Affluents" -- did not change their credit card payment behavior during the past 12 months, according to a new report from Mintel.

The remainder of the group was split evenly between those who formerly paid balances in full but now don't, and those who didn't formerly pay in full, but are now making even smaller monthly payments.



Exactly half of Hispanic Mass Affluents were found to have changed their payment behavior, while for all ethnicities, people under 45 years of age were more likely to have cut back on payments.

Mintel said that 62% of all Mass Affluents, who represent 10% of the total U.S. population, are still paying off their credit card balances in full each month, and only 5% just pay the minimum due.

Meanwhile, for Mass Affluents and any other credit card users who want to stretch their dollars, a new report from Corporate Insight Inc. -- as reported by Colloquy -- rates American Express Blue and Green, Wells Fargo Visa with Enhanced Rewards and HSBC Ecosmart as the best bets for rewards programs.

All offer a rate of return of 1% on a $50 redemption. Several card companies have recently increased the number of rewards points required for redemptions.


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