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Forty-two percent -42%- of Americans are making minimum or no payments on their credit card balances, according to the Cambridge Consumer Credit Index.

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ISLANDIA, N.Y.--(BUSINESS WIRE)--March 5, 2004

Over four out of ten Americans (42%) are making just minimum payments or no payments on their credit card balances, according to the Cambridge Consumer Credit Index. Of those respondents surveyed with revolving balances on their credit cards, 39% made only the minimum payment due and 3% made no payments at all last month. Another 39% paid less than half the balance owed but more than the minimum, while 19% paid more than half their balances. In 2003, 46% of Americans surveyed paid just the minimum (40%) or made no payment at all (6%).

The Cambridge survey also asked Americans who are taking on more debt why they are doing so. 49% of the respondents (up from 44% in 2003) said they are adding debt because they don't have the funds to pay for the purchases in full when the credit card bills arrive, while 51% of Americans (down from 56% in 2003) are taking on debt because they are confident of their ability to pay the balance off in full.

Overall, 39% of Americans paid off their...