Teach Workers about the Perils of Debt

The article reports on a study of U.S. consumers which found that the majority of respondents did not understand the concepts relating to compound interest, credit card fees, and debt. The study on debt literacy was conducted by the authors and the marketing research company TNS. The authors suggest that a component could be added to employee assistance programs that would educate them about financial choices. Statistics show the demographics of the debt literacy test which included a question about compounded annual interest rates.