Study Reveals Credit Card Debt Is Helpful For Jobseekers

(Newswire.net — February 7, 2017) Tallahassee, FL — Credit card debt is a nightmare for many. It is even one of the major reasons why many card holders give up their cards. However, it seems that there is a benefit in having credit.

Study reveals credit access is helpful for jobseekers. Today, more and more people in the United States are getting more credit cards.

The latest Federal Reserve data reveals that Americans owe $952 billion, which is the highest revolving consumer debt since 2009. There are many cardholders that are heading towards financial embarrassment due to their debt.

The new study was from the National Bureau of Economic Research. The researchers aimed at examining job losses and the impact of credit access in the way Americans are finding new jobs.

It was found that credit is more likely to help those who are looking for a job in getting back on their feet. This is especially true to those with fewer savings ad lower income.

The study researchers also reveal that when people lose their jobs, it is the higher credit limit that delays the process of finding a new job. They compared the millions of TransUnion credit reports from 2001 to 2008 with the employment database.

While being unemployed for a long time may look terrible, it is frequently considered a mistake to get employed for the sole reason of desperately needing money. According to the study, unemployment actually allows people to be choosier when they have access to credit.

After making smarter financial decisions, they usually end up getting a better job after a year. A better job means one that is higher-paying and for a more productive company.

Kyle Herkenhoff of the University of Minnesota, study author, Gordon Phillips of Dartmouth College, and Ethan Cohen-Cole of consulting firm Econ-One, reveal that one’s potential to borrow can have an effect in their search decisions regardless of the credit line status.

For unemployed individuals, a credit card with a high limit can be used as emergency savings or unemployment insurance. These extra resources enable them to apply for jobs or move to cities that have remarkable job markets.

In some unemployment cases, credit card debt could potentially offer certain health benefits. Credit cards are life-saving if they are used properly. However, they may also be a cause of nightmare if they fall into the hands of identity thieves.

Individuals who want to protect their cards from fraudsters may use the RFID blocking sleeves, which can be purchased at amazon.com (amazon.com/rfid-blocking-sleeves/dp/B0150T0AI2).