cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Card Debt Over $1 Trillion

Established Contributor

Credit Card Debt Over $1 Trillion

Credit card debt hits new record in November, raising concerns.. https://tiny.iavian.net/kzzx

June 2018 - EX 755 | EQ 778 | TU 756
Message 1 of 25
24 REPLIES
Senior Contributor

Re: Credit Card Debt Over $1 Trillion

Wish it was double that so lenders would raise reward perks and my bank stocks would double again.

The economy appears stronger than I've experienced in my life, namely my friends with unskilled labor jobs are 100% employed (or more) and even the poorest person I know is spending more than I can believe.

All my rentals are rented, with wait lists, and my car rentals on Turo are almost at 80% occupancy which is insane considering I rent my cars out at about 1% value for 3 days.

Even the small restaurant I invested in that I was assured wouldn't last 3 months is now in month 15 and has paid my nut back and then some.

Really insane how much of the economy relies on consumer debt but I'll be happy to see it last two more years if we are lucky.

The piper eventually gets paid, though, and the student loan situation is ghastly.

I only spend money when everyone else is broke during a recession. Invest when others are partying.
Message 2 of 25
Frequent Contributor

Re: Credit Card Debt Over $1 Trillion

I saw this article as well and wondered though if some of this increased 'debt' is due to people using their credit cards to pay bills or purchase goods rather than paying by check, cash or debit card.

 

We used to do that until we realized we were missing points or cash back rewards. Paying in full each month could still show a large amount of credit card debt as each statement is cut unless people are following the AZEO method.

Message 3 of 25
Established Contributor

Re: Credit Card Debt Over $1 Trillion

Well, this coupled with news a few months back regarding a record high average FICO 8 score (700!) means that:

 

1. People are getting smarter about building credit as a resource.

2. People are leveraging that resource to purchase goods and services.

 

Let's hope that people also give that resource proper attention in the long term.

Message 4 of 25
Frequent Contributor

Re: Credit Card Debt Over $1 Trillion


ABCD2199 wrote:
I only spend money when everyone else is broke during a recession. Invest when others are partying.

This is a great motto to go by; and, judging by the collective credit card debt... we're already heading for more troubles.

 

Credit card spending is great for the economy. However, excessive credit card "debt" is never good, particularly with high rates.

 

It just means that people are spending money that they don't really have, on things that they nary can afford. Credit card interest rates are also insanely high, compared to how low they were 10 years ago. Talk about a toxic combination. I recall credit card interest rates as low as 4%, with no fee zero percent balance transfer offers being handed out like candy, whilst you could turn around and put that same money into a CD, or even a high rate checking account. It made sense that people took the money. Now, not so much. Banks are really taking advantage, right now... sticking it to the consumer. Banks not paying out not even a scintilla of interest, and then charging insane interest.

 

Where are the regulations? Oh, that's right, we are planning on scrapping any and all consumer protections. Got it.

 

"Iceburg, dead ahead!" Good thing we're sailing on the unsinkable ship, right?

 

Get ready to start investing in other people's miseries again. It's looking like ripe pickings are just around the bend.

Message 5 of 25
Super Contributor

Re: Credit Card Debt Over $1 Trillion

Back in the day I was a proud owner of about 70k or so of it.  So it seems I wasn't alone.

06/13/2018: FICO 821 EQ 814 TU 808 EX
Message 6 of 25
Senior Contributor

Re: Credit Card Debt Over $1 Trillion

If you didn't pay to read a headline, it's a biased fake news point made by yellow journalists.  Doesn't matter the political persuasion, it's 100% BS, 100% of the time.

 

There are 250 million adults in the US.  $1 trillion is $1,000,000 million / 250 = $4000 credit card debt per adult.

 

That number is lolworthy because it isn't outrageous by any means, especially considering how many people use credit cards responsibly and never have the need to show up on MyFico forums.

 

$4000 credit card debt per adult is NOT shocking or worrisome at all.  It's just a sign of the times as people move to different methods to pay to earn fake rewards and doctored cashback.

Message 7 of 25
Regular Contributor

Re: Credit Card Debt Over $1 Trillion


ABCD2199 wrote:

If you didn't pay to read a headline, it's a biased fake news point made by yellow journalists.  Doesn't matter the political persuasion, it's 100% BS, 100% of the time.

 

There are 250 million adults in the US.  $1 trillion is $1,000,000 million / 250 = $4000 credit card debt per adult.

 

That number is lolworthy because it isn't outrageous by any means, especially considering how many people use credit cards responsibly and never have the need to show up on MyFico forums.

 

$4000 credit card debt per adult is NOT shocking or worrisome at all.  It's just a sign of the times as people move to different methods to pay to earn fake rewards and doctored cashback.


BINGO.  People are more and more gravitating away from using cash and going for beneficial cash back credit cards to custom fit their living standards.  Maybe not to the same degree, but I think we'll be seeing more and more people doing this just like we saw check-writers replaced by debit card users (almost completely - *HATE* when I'm stuck in line behind somebody writing a darned check nowadays!!!).  Not to suggest there is NOT a potential downside to this trend, but this is not your dad's economy today.

Message 8 of 25
Frequent Contributor

Re: Credit Card Debt Over $1 Trillion


ABCD2199 wrote:

If you didn't pay to read a headline, it's a biased fake news point made by yellow journalists.  Doesn't matter the political persuasion, it's 100% BS, 100% of the time.

 

There are 250 million adults in the US.  $1 trillion is $1,000,000 million / 250 = $4000 credit card debt per adult.

 

Did you just really utter the words, "fake news?"

 

Let's please not fall into the trap of uttering ad hominem, derogatory, political dogma, like "fake news" and "yellow journalism" to address things that we simply do not agree with. Just use your words to tear it apart, if it's so objectively warranted.

 

Is the figure in the posted article factually incorrect? If so, please correct the record with references to the actual facts, if in fact there exists a misprint that needs to be pointed out.

 

Let's try to keep these discussions out of the political gutter, befitting proper forum decorum. 

Message 9 of 25
Senior Contributor

Re: Credit Card Debt Over $1 Trillion


trusty wrote:

ABCD2199 wrote:

If you didn't pay to read a headline, it's a biased fake news point made by yellow journalists.  Doesn't matter the political persuasion, it's 100% BS, 100% of the time.

 

There are 250 million adults in the US.  $1 trillion is $1,000,000 million / 250 = $4000 credit card debt per adult.

 

Did you just really utter the words, "fake news?"

 

Let's please not fall into the trap of uttering ad hominem, derogatory, political dogma, like "fake news" and "yellow journalism" to address things that we simply do not agree with. Just use your words to tear it apart, if it's so objectively warranted.

 

Is the figure in the posted article factually incorrect? If so, please correct the record with references to the actual facts, if in fact there exists a misprint that needs to be pointed out.

 

Let's try to keep these discussions out of the political gutter, befitting proper forum decorum. 


It's not politics, it's news.  I should mention I don't vote, never voted, and don't believe in political discussions or debates.  My father raised me properly and taught me that lobbying is what we do to make change and get real news out of private individuals and corporations.

 

News is entertainment, not fact.  It's why people actually listen to actors from Hollywood who have degrees in theater, versus actually spending some time themselves reading disclosures, profit and loss statements, or hiring an analyst to give them the run down on what is actually going on in the world, lol.

 

Watching CNN, Fox, NPR, whatever -- it's no different than VH1 or the Hallmark channel.  Heck, I don't even own a TV or subscribe to any of the yellow journalist periodicals who want to tell me about the health value in gluten, lolol.  Hey kids, eat more sugary cereal because The Rock likes it, too!

 

If it had advertising to support it, it's entertainment value only.  Don't read and trust things backed by ads, that's for sure.

 

As for backing it up with facts, I did.  Read my original post again.  The yellow journalists are screaming "$1 TRILLION OMG OMG" and I said "uhh, $3000 per adult."

 

$3000 per adult is not untenable and not disturbing.  In fact, it feels low because I see people posting about owing $70,000 here, so it actually means the mean balance on credit cards is probably WAY LOWER than $3000 per adult with some small subset running up huge balances.

 

No news here.  Nothing but biased clowns with useless degrees trying to scare people into buying pudding pops and watch the new disney adventure movie.

Message 10 of 25