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CardRates Explores the Average Credit Card Debt by Nation
Credit cards offer the convenience of buy now, and pay later option. But easy swiping can lead to a growing debt burden that may take years to clear. Global debt is reaching a historic high. It becomes crucial to understand the variations in credit card debt across the world.
The Global Perspective on Credit Card Usage
Credit cards have become an aspect of the finances of individuals worldwide. According to the World Debt Report, credit card usage has increased between 2017 and 2021. The penetration still remains below 50% in most countries around the world.
High-income economies exhibit greater credit card usage compared to lower-income nations. The United States stands out as the global leader in credit card ownership and usage.
Data collected from the Federal Reserve’s 2021 Report on the Economic Well-Being of U.S. Households reveal many insights. Approximately 79% of adults in the U.S. have at least one credit card. In the U.K., another developed country, consumer credit card penetration stood at 66% in 2020.
Developing nations and lower-income economies exhibit lower levels of credit card usage. Several African countries have low credit card adoption rates in comparison globally. For example, both Nigeria and Ethiopia have credit card penetration rates of less than 1%.
The key reasons behind these disparities in credit card usage across countries are:
- Consumer behavior
- Cultural influences
- Economic development
- Financial infrastructure
All these contribute to the difference in credit card usage. Additionally, the significance of accessibility of banking services and credit.
Developing nations progress in modernizing their payment systems and consumer credit offerings. Credit card usage is high in such places. It remains uncertain whether they will achieve credit card penetration rates.
Top Nations with the Highest Credit Card Debt
The United States tops the charts when it comes to credit card debt. As of 2021, the median credit card debt per American adult stood at $5,910. Almost 10 times higher than the median worldwide debt of $621. Canada and Australia follow close behind, with medians of $2,035 and $2,092.
The story shifts when comparing high-GDP nations. The US retains its leading position among this group while India has the lowest debt at $302 per adult. Most Western European countries fall somewhere between.
National economic prosperity does not correlate with average credit card debt by Nation. American consumer habits likely contribute to the high balances. This underscores the importance of factors such as spending habits and money management.
Credit Card Penetration: A Deeper Look
While debt highlights country averages, credit card penetration provides insights into ownership levels. According to 2021 statistics, the global average penetration rate stood at 24.4%. The degree of penetration exhibits significant disparities across different geographic regions:
- North America: 64%
- Europe: 54%
- Latin America: 23%
- Asia Pacific: 16%
Canada leads the pack with an impressive 82% penetration rate as of 2021. Australia, the US, and the UK follow close behind, ranging between 65-75%.
Within Europe, credit card prevalence differs. Nordic nations like Finland and Denmark exceed 95% ownership. Meanwhile, countries like Germany, Austria, and the Netherlands report usage rates below 45%. With a preference for debit cards and cash transactions.
The factors of adoption rate such as consumer behavior, infrastructure, interest, and fees. Monitoring ownership levels and penetration sheds light on credit usage trends worldwide.
Strategies to Combat Rising Credit Card Debt
While credit cards offer convenience, sky-high interest rates often exacerbate debt issues. The average credit card interest rate globally falls between 13-15%. Meanwhile, consumers in Brazil and Turkey face rates over 45%.
Several strategies can help consumers tackle credit card debt:
- Balance transfer cards: Transferring balances to a lower-interest card saves on interest charges.
- Interest rate reductions: Card issuers may reduce rates for consistent timely payments.
- Debt consolidation loans: Taking a lower-interest loan repays cards completely.
- Debt relief services: Credit counseling services negotiate with issuers for better terms.
Improving credit scores increases eligibility for better rates and terms. Using credit, limiting inquiries, and monitoring credit reports are key to building scores. Seeking help from reputable sources can aid consumers in debt resolution.
The Behavioral Aspect: Addressing the Root Cause
Behind these debts lies in behavior and money management skills. Financial literacy is essential to make informed borrowing decisions.
- Present bias: Overvaluing instant gratification and undervaluing future costs.
- Overconfidence: Overestimating ability to repay debts.
- Anchoring: Using arbitrary benchmarks like least payments to guide repayment.
Experts propose nudging consumers towards beneficial behaviors as a solution. For instance:
- SMS payment reminders counter present bias and forgetfulness.
- Warnings about lower payments serve to underscore anchoring effects.
- Credit limit decreases to curb overspending.
Financial counseling plays a crucial role in assisting consumers. To identify and change their financial habits in a personalized manner.
Proactive planning, spending discipline, and proper education can curb bad debt. Seeking help from credit counseling services is also wise.
Conclusion
Credit card debt varies worldwide, affected by regional behaviors and economic factors. While high-income nations lead in ownership, developing economies are catching up. Alarming debt levels in countries like the US also signal dangerous money habits.
Global consumers need to become more aware of responsible usage. Achieving financial stability necessitates moderating spending, minimizing charges, and improving financial management habits. With effective strategies, individuals can transform credit cards into assets rather than liabilities.
FAQs
Why does the U.S. have such high credit card debt compared to other nations?
America’s high credit card debt can ease accessing credit, and consumer behavior. This prioritizes spending over saving, and economic conditions such as stagnant wages.
How do interest rates impact average credit card debt in different countries?
Higher interest rates increase the cost of carrying debt, causing balances to accumulate. Lower rates in countries like India explain the lower credit card debt.
Are there nations where credit cards are rarely used?
Many developing countries in Africa and Asia have lower credit card penetration. High poverty levels and underbanked populations often limit credit card adoption.
News
Trudeau’s Gun Grab Could Cost Taxpayers a Whopping $7 Billion
A recent report indicates that since Trudeau’s announcement of his gun buyback program four years ago, almost none of the banned firearms have been surrendered.
The federal government plans to purchase 2,063 firearm models from retailers following the enactment of Bill C-21, which amends various Acts and introduces certain consequential changes related to firearms. It was granted royal assent on December 15 of last year.
This ban immediately criminalized the actions of federally-licensed firearms owners regarding the purchase, sale, transportation, importation, exportation, or use of hundreds of thousands of rifles and shotguns that were previously legal.
The gun ban focused on what it termed ‘assault-style weapons,’ which are, in reality, traditional semi-automatic rifles and shotguns that have enjoyed popularity among hunters and sport shooters for over a century.
In May 2020, the federal government enacted an Order-in-Council that prohibited 1,500 types of “assault-style” firearms and outlined specific components of the newly banned firearms. Property owners must adhere to the law by October 2023.
Trudeau’s Buyback Hasn’t Happened
“In the announcement regarding the ban, the prime minister stated that the government would seize the prohibited firearms, assuring that their lawful owners would be ‘grandfathered’ or compensated fairly.” “That hasn’t happened,” criminologist Gary Mauser told Rebel News.
Mauser projected expenses ranging from $2.6 billion to $6.7 billion. The figure reflects the compensation costs amounting to $756 million, as outlined by the Parliamentary Budget Office (PBO).
“The projected expenses for gathering the illegal firearms are estimated to range from $1.6 billion to $7 billion.” “This range estimate increases to between $2.647 billion and $7 billion when compensation costs to owners are factored in,” Mauser stated.
Figures requested by Conservative MP Shannon Stubbs concerning firearms prohibited due to the May 1, 2020 Order In Council reveal that $72 million has been allocated to the firearm “buyback” program, yet not a single firearm has been confiscated to date.
In a recent revelation, Public Safety Canada disclosed that the federal government allocated a staggering $41,094,556, as prompted by an order paper question from Conservative Senator Don Plett last September, yet yielded no tangible outcomes.
An internal memo from late 2019 revealed that the Liberals projected their politically motivated harassment would incur a cost of $1.8 billion.
Enforcement efforts Questioned
By December 2023, estimates from TheGunBlog.ca indicate that the Liberals and RCMP had incurred or were responsible for approximately $30 million in personnel expenses related to the enforcement efforts. The union representing the police service previously stated that the effort to confiscate firearms is a “misdirected effort” aimed at ensuring public safety.
“This action diverts crucial personnel, resources, and funding from tackling the more pressing and escalating issue of criminal use of illegal firearms,” stated the National Police Federation (NPF).
The Canadian Sporting Arms & Ammunition Association (CSAAA), representing firearms retailers, has stated it will have “zero involvement” in the confiscation of these firearms. Even Canada Post held back from providing assistance due to safety concerns.
The consultant previously assessed that retailers are sitting on almost $1 billion worth of inventory that cannot be sold or returned to suppliers because of the Order-In-Council.
“Despite the ongoing confusion surrounding the ban, after four years, we ought to be able to address one crucial question.” Has the prohibition enhanced safety for Canadians? Mauser asks.
Illegally Obtained Firearms are the Problem
Statistics Canada reports a 10% increase in firearm-related violent crime between 2020 and 2022, rising from 12,614 incidents to 13,937 incidents. In that timeframe, the incidence of firearm-related violent crime increased from 33.7 incidents per 100,000 population in 2021 to 36.7 incidents the subsequent year.
“This marks the highest rate documented since the collection of comparable data began in 2009,” the criminologist explains.
Supplementary DataData indicates that firearm homicides have risen since 2020. “The issue lies not with lawfully-held firearms,” Mauser stated.
Firearms that have been banned under the Order-in-Council continue to be securely stored in the safes of their lawful owners. The individuals underwent a thorough vetting process by the RCMP and are subject to nightly monitoring to ensure there are no infractions that could pose a risk to public safety.
“The firearms involved in homicides were seldom legally owned weapons wielded by their rightful owners,” Mauser continues. The number of offenses linked to organized crime has surged from 4,810 in 2016 to a staggering 13,056 in 2020.
“If those in power … aim to diminish crime and enhance public safety, they ought to implement strategies that effectively focus on offenders and utilize our limited tax resources judiciously to reach these objectives,” he stated.
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Google’s Search Dominance Is Unwinding, But Still Accounting 48% Search Revenue
Google is so closely associated with its key product that its name is a verb that signifies “search.” However, Google’s dominance in that sector is dwindling.
According to eMarketer, Google will lose control of the US search industry for the first time in decades next year.
Google will remain the dominant search player, accounting for 48% of American search advertising revenue. And, remarkably, Google is still increasing its sales in the field, despite being the dominating player in search since the early days of the George W. Bush administration. However, Amazon is growing at a quicker rate.
Google’s Search Dominance Is Unwinding
Amazon will hold over a quarter of US search ad dollars next year, rising to 27% by 2026, while Google will fall even more, according to eMarketer.
The Wall Street Journal was first to report on the forecast.
Lest you think you’ll have to switch to Bing or Yahoo, this isn’t the end of Google or anything really near.
Google is the fourth-most valued public firm in the world. Its market worth is $2.1 trillion, trailing just Apple, Microsoft, and the AI chip darling Nvidia. It also maintains its dominance in other industries, such as display advertisements, where it dominates alongside Facebook’s parent firm Meta, and video ads on YouTube.
To put those “other” firms in context, each is worth more than Delta Air Lines’ total market value. So, yeah, Google is not going anywhere.
Nonetheless, Google faces numerous dangers to its operations, particularly from antitrust regulators.
On Monday, a federal judge in San Francisco ruled that Google must open up its Google Play Store to competitors, dealing a significant blow to the firm in its long-running battle with Fortnite creator Epic Games. Google announced that it would appeal the verdict.
In August, a federal judge ruled that Google has an illegal monopoly on search. That verdict could lead to the dissolution of the company’s search operation. Another antitrust lawsuit filed last month accuses Google of abusing its dominance in the online advertising business.
Meanwhile, European regulators have compelled Google to follow tough new standards, which have resulted in multiple $1 billion-plus fines.
Google’s Search Dominance Is Unwinding
On top of that, the marketplace is becoming more difficult on its own.
TikTok, the fastest-growing social network, is expanding into the search market. And Amazon has accomplished something few other digital titans have done to date: it has established a habit.
When you want to buy anything, you usually go to Amazon, not Google. Amazon then buys adverts to push companies’ products to the top of your search results, increasing sales and earning Amazon a greater portion of the revenue. According to eMarketer, it is expected to generate $27.8 billion in search revenue in the United States next year, trailing only Google’s $62.9 billion total.
And then there’s AI, the technology that (supposedly) will change everything.
Why search in stilted language for “kendall jenner why bad bunny breakup” or “police moving violation driver rights no stop sign” when you can just ask OpenAI’s ChatGPT, “What’s going on with Kendall Jenner and Bad Bunny?” in “I need help fighting a moving violation involving a stop sign that wasn’t visible.” Google is working on exactly this technology with its Gemini product, but its success is far from guaranteed, especially with Apple collaborating with OpenAI and other businesses rapidly joining the market.
A Google spokeswoman referred to a blog post from last week in which the company unveiled ads in its AI overviews (the AI-generated text that appears at the top of search results). It’s Google’s way of expressing its ability to profit on a changing marketplace while retaining its business, even as its consumers steadily transition to ask-and-answer AI and away from search.
Google has long used a single catchphrase to defend itself against opponents who claim it is a monopoly abusing its power: competition is only a click away. Until recently, that seemed comically obtuse. Really? We are going to switch to Bing? Or Duck Duck Go? Give me a break.
But today, it feels more like reality.
Google is in no danger of disappearing. However, every highly dominating company faces some type of reckoning over time. GE, a Dow mainstay for more than a century, was broken up last year and is now a shell of its previous dominance. Sears declared bankruptcy in 2022 and is virtually out of business. US Steel, long the foundation of American manufacturing, is attempting to sell itself to a Japanese corporation.
SOURCE | CNN
News
The Supreme Court Turns Down Biden’s Government Appeal in a Texas Emergency Abortion Matter.
(VOR News) – A ruling that prohibits emergency abortions that contravene the Supreme Court law in the state of Texas, which has one of the most stringent abortion restrictions in the country, has been upheld by the Supreme Court of the United States. The United States Supreme Court upheld this decision.
The justices did not provide any specifics regarding the underlying reasons for their decision to uphold an order from a lower court that declared hospitals cannot be legally obligated to administer abortions if doing so would violate the law in the state of Texas.
Institutions are not required to perform abortions, as stipulated in the decree. The common populace did not investigate any opposing viewpoints. The decision was made just weeks before a presidential election that brought abortion to the forefront of the political agenda.
This decision follows the 2022 Supreme Court ruling that ended abortion nationwide.
In response to a request from the administration of Vice President Joe Biden to overturn the lower court’s decision, the justices expressed their disapproval.
The government contends that hospitals are obligated to perform abortions in compliance with federal legislation when the health or life of an expectant patient is in an exceedingly precarious condition.
This is the case in regions where the procedure is prohibited. The difficulty hospitals in Texas and other states are experiencing in determining whether or not routine care could be in violation of stringent state laws that prohibit abortion has resulted in an increase in the number of complaints concerning pregnant women who are experiencing medical distress being turned away from emergency rooms.
The administration cited the Supreme Court’s ruling in a case that bore a striking resemblance to the one that was presented to it in Idaho at the beginning of the year. The justices took a limited decision in that case to allow the continuation of emergency abortions without interruption while a lawsuit was still being heard.
In contrast, Texas has been a vocal proponent of the injunction’s continued enforcement. Texas has argued that its circumstances are distinct from those of Idaho, as the state does have an exemption for situations that pose a significant hazard to the health of an expectant patient.
According to the state, the discrepancy is the result of this exemption. The state of Idaho had a provision that safeguarded a woman’s life when the issue was first broached; however, it did not include protection for her health.
Certified medical practitioners are not obligated to wait until a woman’s life is in imminent peril before they are legally permitted to perform an abortion, as determined by the state supreme court.
The state of Texas highlighted this to the Supreme Court.
Nevertheless, medical professionals have criticized the Texas statute as being perilously ambiguous, and a medical board has declined to provide a list of all the disorders that are eligible for an exception. Furthermore, the statute has been criticized for its hazardous ambiguity.
For an extended period, termination of pregnancies has been a standard procedure in medical treatment for individuals who have been experiencing significant issues. It is implemented in this manner to prevent catastrophic outcomes, such as sepsis, organ failure, and other severe scenarios.
Nevertheless, medical professionals and hospitals in Texas and other states with strict abortion laws have noted that it is uncertain whether or not these terminations could be in violation of abortion prohibitions that include the possibility of a prison sentence. This is the case in regions where abortion prohibitions are exceedingly restrictive.
Following the Supreme Court’s decision to overturn Roe v. Wade, which resulted in restrictions on the rights of women to have abortions in several Republican-ruled states, the Texas case was revisited in 2022.
As per the orders that were disclosed by the administration of Vice President Joe Biden, hospitals are still required to provide abortions in cases that are classified as dire emergency.
As stipulated in a piece of health care legislation, the majority of hospitals are obligated to provide medical assistance to patients who are experiencing medical distress. This is in accordance with the law.
The state of Texas maintained that hospitals should not be obligated to provide abortions throughout the litigation, as doing so would violate the state’s constitutional prohibition on abortions. In its January judgment, the 5th United States Circuit Court of Appeals concurred with the state and acknowledged that the administration had exceeded its authority.
SOURCE: AP
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