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Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

wsj.com

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Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#101

Post by crescentfresh »

throwawaykeno wrote: post #7

One thing that's unclear for the article: does this include debt that never incurs any interest? I typically have an outstanding balance in the 3-4 figures on my credit card because I pay for rent, gas, and airline tickets with credit. However, it gets paid off every month. I guess that's technically debt, but it's not problematic or anything... I feel like the majority of credit card debt is the type of "debt" that…

As I applied for a mortgage, this question came up - as it pertains to "how much debt do you have?" - and the answer was that I only have as much debt as the minimum payment I must make each month. I told them I always pay in full, they said then you only have $10 in monthly debt ($10 being my minimum payment amount).

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#102

Post by damptowel »

throwawaykeno wrote: post #60
abarringer wrote: post #21

Earlier quoted context omitted.

Your feelings are way off. Most credit card debt is not paid off every month. Not by a very very long shot. Average credit card debt per U.S. adult, excluding zero-balance cards and store cards: $5,232.43 Average debt per credit card that usually carries a balance: $7,494.44 Average number of cards held by cardholders - bankcards: 2.24 Average debt per credit card that doesn't usually carry a balance: $1,128.44 http:…

> Average credit card debt per U.S. adult, excluding zero-balance cards and store cards: $5,232.43 That is amazing and terrifying.

And its only the tip of the iceberg, read Richard Vague or Steve Keen. Global private sector debt is at historic record levels. It's the sole reason the economy stays sour.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#103

Post by heimatau »

abarringer wrote: post #21
throwawaykeno wrote: post #7

One thing that's unclear for the article: does this include debt that never incurs any interest? I typically have an outstanding balance in the 3-4 figures on my credit card because I pay for rent, gas, and airline tickets with credit. However, it gets paid off every month. I guess that's technically debt, but it's not problematic or anything... I feel like the majority of credit card debt is the type of "debt" that…

Your feelings are way off. Most credit card debt is not paid off every month. Not by a very very long shot. Average credit card debt per U.S. adult, excluding zero-balance cards and store cards: $5,232.43 Average debt per credit card that usually carries a balance: $7,494.44 Average number of cards held by cardholders - bankcards: 2.24 Average debt per credit card that doesn't usually carry a balance: $1,128.44 http:…

I sadly think those numbers are low-balled. But also, everyone complies their stats differently. I have 10 credit cards. I find it strange the average is barely 2. Most people I know hold ~5 but only use 1-2. But I also think the average debt per household is higher too. Since your numbers are 'per us adult'.

Regardless, I think US citizens are carrying way too much debt and...one day, this musical chairs dance will come to a stop. :/

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#104

Post by DINKDINK »

abarringer wrote: post #21
throwawaykeno wrote: post #7

One thing that's unclear for the article: does this include debt that never incurs any interest? I typically have an outstanding balance in the 3-4 figures on my credit card because I pay for rent, gas, and airline tickets with credit. However, it gets paid off every month. I guess that's technically debt, but it's not problematic or anything... I feel like the majority of credit card debt is the type of "debt" that…

Your feelings are way off. Most credit card debt is not paid off every month. Not by a very very long shot. Average credit card debt per U.S. adult, excluding zero-balance cards and store cards: $5,232.43 Average debt per credit card that usually carries a balance: $7,494.44 Average number of cards held by cardholders - bankcards: 2.24 Average debt per credit card that doesn't usually carry a balance: $1,128.44 http:…

Ignore these statistics, they're reporting average debt of credit cards. The level of debt per card is not an independent variable. You need to be reporting median debt.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#105

Post by jandrese »

nametakenobv wrote: post #85
superuser2 wrote: post #58

I propose that credit card debt is simply the earliest signal of "not making enough money to sustain the life you think of as normal." We have not yet come to terms with the fact that the overwhelming majority of people outside of a tiny sliver of elites are going to be lucky to afford bare subsistence in the years to come. Credit card debt lets us delay confrontation with the reality that wages have not grown enough…

Please stop with this heart-breaking narrative about the unequal in income, starving americans. It's about iphones and clothes, not groceries.

Or medical bills. It only takes one major illness to ruin your average American family.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#106

Post by throwaway9574 »

I know some may criticize this, but I cut up my credit card soon after moving into my first apartment. My wife and I use debit cards exclusively, but I know it's only a matter of time before our card numbers get skimmed online or through a hacked terminal. Does anyone know of any measures we could take to minimize the effects when that does happen?

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#107

Post by yrro »

throwaway9574 wrote: post #106

I know some may criticize this, but I cut up my credit card soon after moving into my first apartment. My wife and I use debit cards exclusively, but I know it's only a matter of time before our card numbers get skimmed online or through a hacked terminal. Does anyone know of any measures we could take to minimize the effects when that does happen?

Use a separate card for online purchases--for instance, a credit card that you pay off, in full, every month.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#108

Post by epimetheus »

dionidium wrote: post #100
bluedino wrote: post #75

Earlier quoted context omitted.

Your landlord accepts credit card payments and you pay him/her with your credit card? No different than any other vendor. Mine charges like 2% or something to cover costs.

"Mine charges like 2% or something to cover costs." What I meant to ask was, "How do you pay rent with credit (without paying $30-40 each month for the privilege)?"

My last landlord waived the fee if we had it set on automatic bill pay (via the credit card), I'm not sure if the peace of mind was worth the loss, but considering rent was 750 dollars, 2% would have only been 15 dollars. They probably pad the rent a bit to make up for it, but 750 for a 2 bedroom apartment was still a pretty good deal for the area at the time.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#109

Post by JoshGlazebrook »

throwaway9574 wrote: post #106

I know some may criticize this, but I cut up my credit card soon after moving into my first apartment. My wife and I use debit cards exclusively, but I know it's only a matter of time before our card numbers get skimmed online or through a hacked terminal. Does anyone know of any measures we could take to minimize the effects when that does happen?

(not affiliated in any way) but privacy.com lets you hook up to your bank account and lets you generate one time use card numbers for individual bills, etc. They recently expanded to 15,000 banks/credit unions. It won't help with physical card skimming, but for online stuff it can.

https://privacy.com/

Another option is to use one credit card, and only use it for bills/budgeted expenses and NOTHING more. Then just pay it off every month. This will prevent your real money from being being stolen/frozen in the event of your card number being lost/skimmed, and it can also gain you cash back and/or rewards.

Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

#110

Post by purplecpa »

throwaway9574 wrote: post #106

I know some may criticize this, but I cut up my credit card soon after moving into my first apartment. My wife and I use debit cards exclusively, but I know it's only a matter of time before our card numbers get skimmed online or through a hacked terminal. Does anyone know of any measures we could take to minimize the effects when that does happen?

Use a credit card instead of debit card and pay it off each month. If they steal your debit card number and get money out of your bank account it's a huge hassle to clear up that can take months with out getting your money back. If it's a credit card you can easily get the charges removed and even if you have to fight it you still have your money in your bank and can just refuse to pay the fraudulent credit card bill.
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