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Credit Card Debt is Worse for Those Making $100K+

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Community Leader
Super Contributor

Credit Card Debt is Worse for Those Making $100K+

Well this was an eye-opener.

Adults with a net worth of $100,000 or more are struggling the most, according to a new report.

https://www.google.com/amp/s/www.cnbc.com/amp/2019/12/18/credit-card-debt-is-worse-for-those-with-hi...


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Message 1 of 13
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Senior Contributor

Re: Credit Card Debt is Worse for Those Making $100K+


@CreditInspired wrote:
Well this was an eye-opener.

It sure is.  Maybe that's why some ppl with 100k don't get high sl. idk....just thought about that reading this article.  Thanks for posting.

"MY TAKE HOME PAY WON'T TAKE ME HOME"
Message 2 of 13
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Community Leader
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Re: Credit Card Debt is Worse for Those Making $100K+


@GApeachy wrote:

@CreditInspired wrote:
Well this was an eye-opener.

It sure is.  Maybe that's why some ppl with 100k don't get high sl. idk....just thought about that reading this article.  Thanks for posting.


Hmmm. Excellent observation GApeachy. 



DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799
DEC 2017: EX 775, TU 778, EQ 769

|| NFCU CashRewards $30K || AmX Cash Magnet $30K || Discover IT $22.2K || Macy's $20K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 3 of 13
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Re: Credit Card Debt is Worse for Those Making $100K+

It makes sense. People that make a lot of money are expected to look like they make a lot of money.  That means having the house, clothes, and cars. It's hard for people to believe someone makes over 100k if they drive a Toyota Corolla and shop at Walmart. When someone doesn't look the part, people don't have faith they can do the job.







Message 4 of 13
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Senior Contributor

Re: Credit Card Debt is Worse for Those Making $100K+


@Brian_Earl_Spilner wrote:

It makes sense. People that make a lot of money are expected to look like they make a lot of money.  That means having the house, clothes, and cars. It's hard for people to believe someone makes over 100k if they drive a Toyota Corolla and shop at Walmart. When someone doesn't look the part, people don't have faith they can do the job.


Yeah, you're right, sometimes it is all about the presentation.  But not all ppl are high-faluter's in that $ bracket.  For some, particularly the Construction sector, 100k puts you in a bracket that's sucks the life-blood out of you.  Health Ins, $ amt. on revenue means more $ towards workman's comp/liability Ins., audits of all sorts left and right; taxes, etc.  There are just a lot of hard hits that you'd not take in the gut with lower reported income....stuck between Scylla and Charybdis.  More $ comes more responsibility up to a certain point, it is draining if you're having to rely on yourself for income and not employed making that jack through corp. 

So that's where I think it gives pause to lending decisions.  I know self employed is viewed differently depending on the line/trade as well.  We are all bucketed by profession and that $$$$.  

"MY TAKE HOME PAY WON'T TAKE ME HOME"
Message 5 of 13
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Community Leader
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Re: Credit Card Debt is Worse for Those Making $100K+

That's a valid point as the article doesn't say where most of those income earners are getting that money. A small business owner would naturally incur more costs and debt over someone who makes the same amount of money at a corporate entity.







Message 6 of 13
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Moderator Emeritus

Re: Credit Card Debt is Worse for Those Making $100K+

I think a big point is missed here.  We're not talking 100K income, we're talking 100K (to <200K) in net worth.

 

Net Worth = Net Assets - Net Debts = 100K-~199K in the black.

 

Anyone that's holding 2500 in high interest credit card debt (half of those people polled) or the additional 39% with over 5K that has that level of assets lying around with the current rates is just doing it wrong.  Trust me when I say there are plenty of people who are not doing that well financially even within walking distance and this article is not a good one in my opinion as a result.  Sloppy title on the article.

 

Actually from a source I actually read, more than half of all Americans are doing worse than what's listed:

 

https://www.marketwatch.com/story/whats-your-net-worth-and-how-do-you-compare-to-others-2018-09-24

 




        
Message 7 of 13
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Moderator Emeritus

Re: Credit Card Debt is Worse for Those Making $100K+


@GApeachy wrote:

@Brian_Earl_Spilner wrote:

It makes sense. People that make a lot of money are expected to look like they make a lot of money.  That means having the house, clothes, and cars. It's hard for people to believe someone makes over 100k if they drive a Toyota Corolla and shop at Walmart. When someone doesn't look the part, people don't have faith they can do the job.


Yeah, you're right, sometimes it is all about the presentation.  But not all ppl are high-faluter's in that $ bracket.  For some, particularly the Construction sector, 100k puts you in a bracket that's sucks the life-blood out of you.  Health Ins, $ amt. on revenue means more $ towards workman's comp/liability Ins., audits of all sorts left and right; taxes, etc.  There are just a lot of hard hits that you'd not take in the gut with lower reported income....stuck between Scylla and Charybdis.  More $ comes more responsibility up to a certain point, it is draining if you're having to rely on yourself for income and not employed making that jack through corp. 

So that's where I think it gives pause to lending decisions.  I know self employed is viewed differently depending on the line/trade as well.  We are all bucketed by profession and that $$$$.  


Old Business read was the book "Dress for Success" ... grandpa.gif

Message 8 of 13
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Senior Contributor

Re: Credit Card Debt is Worse for Those Making $100K+


@Revelate wrote:

I think a big point is missed here.  We're not talking 100K income, we're talking 100K (to <200K) in net worth.

 

Net Worth = Net Assets - Net Debts = 100K-~199K in the black.

 

Anyone that's holding 2500 in high interest credit card debt (half of those people polled) or the additional 39% with over 5K that has that level of assets lying around with the current rates is just doing it wrong.  Trust me when I say there are plenty of people who are not doing that well financially even within walking distance and this article is not a good one in my opinion as a result.  Sloppy title on the article.

 

Actually from a source I actually read, more than half of all Americans are doing worse than what's listed:

 

https://www.marketwatch.com/story/whats-your-net-worth-and-how-do-you-compare-to-others-2018-09-24

 


Okay, thanks for pointing that out....These two sentences had me thinking the article was about income:  

 

"While household income has grown over the past decade, it has failed to keep up with the increased cost of living over the same period."

 

"Better yet, “start an emergency savings fund, take on a side hustle, sell stuff you don’t need around the house or get a zero-balance transfer offer and set some money aside,” Rossman advised."

"MY TAKE HOME PAY WON'T TAKE ME HOME"
Message 9 of 13
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Senior Contributor

Re: Credit Card Debt is Worse for Those Making $100K+


@Dinosaur wrote:

 

Old Business read was the book "Dress for Success" ... grandpa.gif



Lol!  I think that book came out right before I graduated hs. 

"MY TAKE HOME PAY WON'T TAKE ME HOME"
Message 10 of 13
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