It would appear that Americans don’t even know how much they owe. Households underreport the magnitude of their credit card debts by at least one-third, according to a new study from the Federal Reserve Bank of New York. The difference for the average household is more than $2,000.
Only 50 percent of households reported any credit card debt, while credit card companies reported that 76 percent of households owed them money.
Why do people underreport the magnitude of their debts?