Hongkongers best in world at keeping up with credit card bills, survey shows
Of close to 2,900 local cardholders polled, 86pc paid off bills every month, ahead of those in US, Australia and Singapore
Almost 90 per cent of Hong Kong credit card holders pay their bills on time, exercising a high level of debt avoidance discipline that belies the fact that most own on average four credit cards.
Hong Kong cardholders rank higher than those in the US, Australia, and Singapore when it comes to keeping up with monthly payments, according to market research company J. D. Power, which polled almost 2,900 Hongkongers.
86 per cent of Hongkongers kept up payments, while only 57 per cent of US citizens managed to do the same. Australia trailed the US by one per cent, while Singapore came second on the list at 80 per cent.
“The research on the one hand suggests that Hongkongers are more prudent [than cardholders in the other markets], and tend less to use credit cards to get into debt,” said J.D. Power’s director Dr Gordon Shields. “But it also reflects how interest rates are prohibitively high in Hong Kong [detering Hongkongers from borrowing on credit cards].”
Hongkongers tend to take up credit cards more for the benefits and discounts they offer than in order to borrow money, which would explain why many do not fall behind on payments, he added.