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Credit Card Debt Over $1 Trillion

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UncleB
Credit Mentor

Re: Credit Card Debt Over $1 Trillion

Just a reminder... conversations about politics are off-limits on myFICO.

 

http://ficoforums.myfico.com/t5/User-Guidelines-General/5-Things-We-Don-t-Talk-About/td-p/336929

 

--UB

Message 21 of 25
marty56
Super Contributor

Re: Credit Card Debt Over $1 Trillion

O/T:  On the whole TV news thing, the international news channels like from Korea and China tend to be much less commentary and let the stories do the talking so the viewer can draw their own conculsions.

 

I don't know if all that debt is a bubble, or just a sign that the economy is good so people are willing to spend more.  or even if that is bad news.  IMHO I'm neutral on it since I might buy a more expensive car now that I just retired and got another job as well so my income is more so I can afford to do that and add more to my debt.

 

I wonder what would happen if every single person started PIF'ing instead of carrying CC debt or everyone defaulted on their CCs at once.

 

 

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 22 of 25
BM3
Regular Contributor

Re: Credit Card Debt Over $1 Trillion

Good discussion. My humble take:

 

1. I saw a chart a few years ago which showed customer's spending, and what was used to pay. It didn't drop after the recession, but it was supported now by more cc debt. Right away sent warning signs.  

 

 

"People will never learn. We get away with whatever is legal, and some illegal or unprecedented things... no matter how unethical they are."

 

2. Get real for a moment - imagine someone living a certain lifestyle, then going to bk, then they get new cc's. Project what happens in 3 years? One case is my mom who's maxed, again. Why? You get tied to a lifestyle, yes, but look at the inflation vs wages increase. Seriously, I'd love to hear more from someone - how is this even legal to make things more expensive but not pay you more for living in a more expensive world? What's left for that person but credit, when they already get told over and over, 'accountability? F that when you're riding in a new car!"

 

3. I pay attention to meal deals on TV ads because I'm currently overseas, and I sometimes miss the American ridiculous, psychotic marketing machine. Trusty is spot on - food promos are getting cheaper. 

 

4. 10 years ago I had 7% CC rates, and I was apalled at Canadian APR rates. I literally couldn't fathom how someone could afford to live in Montreal - half to taxes, 15% sales tax, 25% CC.  Now that APR is reality. Curious to hear what's an avg APR for those with 750 score?

 

5. What can potentially be the next big problem, leading to a new crisis? Crypto. IBanks will gamble on ANYTHING. This drop we just had in crypto a blessing in desguise. For every dude who comes here saying he lost all his money, if this didn't happen now, later would be 10.

 

Cheers

Message 23 of 25
Anonymous
Not applicable

Re: Credit Card Debt Over $1 Trillion


wrote:

Good discussion. My humble take:

 

1. I saw a chart a few years ago which showed customer's spending, and what was used to pay. It didn't drop after the recession, but it was supported now by more cc debt. Right away sent warning signs.  

 

 

"People will never learn. We get away with whatever is legal, and some illegal or unprecedented things... no matter how unethical they are."

 

2. Get real for a moment - imagine someone living a certain lifestyle, then going to bk, then they get new cc's. Project what happens in 3 years? One case is my mom who's maxed, again. Why? You get tied to a lifestyle, yes, but look at the inflation vs wages increase. Seriously, I'd love to hear more from someone - how is this even legal to make things more expensive but not pay you more for living in a more expensive world? What's left for that person but credit, when they already get told over and over, 'accountability? F that when you're riding in a new car!"

 

3. I pay attention to meal deals on TV ads because I'm currently overseas, and I sometimes miss the American ridiculous, psychotic marketing machine. Trusty is spot on - food promos are getting cheaper. 

 

4. 10 years ago I had 7% CC rates, and I was apalled at Canadian APR rates. I literally couldn't fathom how someone could afford to live in Montreal - half to taxes, 15% sales tax, 25% CC.  Now that APR is reality. Curious to hear what's an avg APR for those with 750 score?

 

5. What can potentially be the next big problem, leading to a new crisis? Crypto. IBanks will gamble on ANYTHING. This drop we just had in crypto a blessing in desguise. For every dude who comes here saying he lost all his money, if this didn't happen now, later would be 10.

 

Cheers


On crypto we are already seeing people borrowing to get in on it and losing everything. Too many people think they know enough to gamble in the stock market on their own. While some are successful, most have no clue what they are doing and lose their behinds borrowing to get in. I’ve seen article after article in here people asking for help what to do. Now that crypto is starting to see downturns from the high it’s only going to get worse these horror stories. Every generation seems to make all the same mistakes as the past ones lol.

Message 24 of 25
Anonymous
Not applicable

Re: Credit Card Debt Over $1 Trillion

As some point out , there’s no context for this article. Debt per capital or some other comparisons would be more meaningful. 

Message 25 of 25
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