Question

The following quote is from the article "Credit Card Debt Rises Faster for Seniors."† The study, which will be released today by Demos, a liberal public policy group, shows that low- and middle-income consumers 65 and older carried $10,235 in average credit card debt last year. What additional information would you want in order to evaluate the accuracy of this estimate?

Answer 1

To assess the accuracy of the estimate on seniors' credit card debt, detailed study methodology, sample size and demographics, and the timeframe for data collection are needed. This information should be compared with general credit card market data and interest rates to evaluate the study's context and reliability.

Step-by-step explanation:

To evaluate the accuracy of the estimate provided in the quote from the article "Credit Card Debt Rises Faster for Seniors," additional information is required. Specifically, it would be helpful to have the methodology of Demos's study, the sample size and demographics of the respondents, and the time frame over which the data was collected. Comparing these details with broader credit card market data, such as the outstanding credit card debt of $807 billion in May 2021 and the fact that around 45% of American families carried some credit card debt, would lend context to the study's findings and assess its reliability. It's also relevant to note the average credit card interest rate of 15% per year as an economic factor that can significantly affect the cost of maintaining credit card debt, especially for seniors who might be on fixed incomes.