Courtesy of Ian Rogers of ‘The Sheet‘ newsletter on the financial industry:
Few CFOs pay down their credit cards
In keeping with the findings of this East and JP Morgan survey in the past, the research found that less than 20 per cent of respondents at the top 500 companies mainly chief financial officers take the trouble to pay off their personal credit card balance each month (if they have one).
In the middle market, 44 per cent of respondents (possibly CFOs) pay off their credit card. In the small business segment, 61 per cent of respondents (perhaps business owners rather than finance directors) pay off their credit card.
It’s an interesting finding, albeit representative of only a slice of the credit card holder customer base. However, presumably busy and possibly high-net-worth people regard the cost of carrying debt on credit cards as cheap.
JP Morgan speculates in the published research that this attitude toward the cost of credit card debt might be a good indicator of the views of those with revolving credit card balances, and that the presumed risk of credit loss on banks’ credit card portfolios may be lower than otherwise believed.