Earlier quoted context omitted.
Well the median is an average so... And honestly both averages should be presented together, paints a terrifying picture
You're thinking of the mean.
Both median and mean are averages.
Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
141–150 of 231 posts
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#142Earlier quoted context omitted.
How do CC companies make money off of minimum payments? Don't they lose money by lending more than what's paid back?
It's banks that do, CC companies primarily just facilitate the data exchange between the parties involved and charge per tx fee. The way banks make money on those payments is the way any other interest loan payment works - you'll eventually pay what you owe but by the time you're done you paid the original debt + interest.
Actually, the issuing banks will get some of the transaction fees as well, so they make out both ways. The "CC companies" are better thought of as networks (Visa, etc.) and they live mostly on those transaction fees, as you mention. The networks don't issue any cards, and they carry debit and other transactions as well, so not quite right to call them "CC companies".
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#143Earlier quoted context omitted.
Well the median is an average so... And honestly both averages should be presented together, paints a terrifying picture
Median is the middle value of all values in a sequence. Average is the sum of all numbers in a sequence, divided by the count of values. Take [0,2,100]: average is 34, but median is 2.
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Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#144Sorry for being pedantic, but the correct term is "could not care less". Otherwise you are suggesting that they do care.
It is of my opinion that if a word or phrase is logically improper but the meaning is widely understood, then societal acceptance grants it validity. Edit: This post is receiving a fair amount of downvoting. I would be very interested to hear arguments that are not from my own viewpoint.
I downvoted you because it goes against the way I think. While I accept the basis of solipsism, it's simply not a practical way to live one's life.
However, language is not math, and adhering and enforcing rigid definitions might pave the path to newspeak. So after having thought about it, I regret downvoting you.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#145Sorry for being pedantic, but the correct term is "could not care less". Otherwise you are suggesting that they do care.
I've had this conversation a good few times and I quite like "could care less" - to me it implies more choice on the part of the speaker. I COULD care less. I have that capacity. I actively choose not to. Although this is definitely not how people usually use it.
"I've had this conversation a good few times and I quite like "could care less" - to me it implies more choice on the part of the speaker. I COULD care less. I have that capacity. I actively choose not to."
That is the dumbest thing I have ever read.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#146Earlier 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:…
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…
FWIW, I don't think you or I actually know that many average people. While we've got a pile of no-fee cards with high limits, many people get by with high-interest, low limit cards that have fees attached. Below that there are a lot of people who have to rely on prepaid Visa cards to participate in the cashless economy.
Source: have moved a _lot_ of credit cards through SEM.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#147Earlier quoted context omitted.
It is of my opinion that if a word or phrase is logically improper but the meaning is widely understood, then societal acceptance grants it validity. Edit: This post is receiving a fair amount of downvoting. I would be very interested to hear arguments that are not from my own viewpoint.
I downvoted you because it goes against the way I think. While I accept the basis of solipsism, it's simply not a practical way to live one's life. However, language is not math, and adhering and enforcing rigid definitions might pave the path to newspeak. So after having thought about it, I regret downvoting you.
:)
I really appreciate your perspective. The internet makes it too easy to "fire and forget." I hadn't even considered my own opinion in the way in which you framed it. Thank you.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#148Earlier quoted context omitted.
Considering it is 2016, many Landlords have some form of payment processor they can use to accept credit card payments. Love it, as it's how I get a ton of miles / points for money I'm already spending anyway.
With the additional 2-3% that is charged, it comes out to about very similar to purchasing the points directly. Like Amex SPG costs $157 for 5000 points. If I pay my $1500 rent via my Amex but with an additional $50 premium, after 3 months, I have 4500 points for $150, versus being able to purchase 5k points for $157. If I spend $525, I can get 20k points. So it's better for this particular card to put aside the extr…
The key is using the right card with the right processor. There are certain cards that earn multiples with certain processors. Personally, I use a card that gives me 3 points per dollar and pay 2.5% in fees… so I'm "purchasing" points for 0.8c per point. Those points are worth 1.5c+ per point, at the very least.
In fact, I just used 75k of them for a first class ticket to Asia. At a "purchase cost" of $600—so I'd call that a sweet deal.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#149Earlier quoted context omitted.
They do exist. However "as a convenience" they allow overdrafts at ridiculously high costs. AFAIK you can't shut this feature off and just have charges declined if there isn't enough money in the account.
I thought all overdraft protection is opt-in now? (I thought they passed a law about it in the past few years)
Based on both these replies I went to go look at my account. Apparently the way it works is that you can shut off overdraft protection and if you strictly use the card as debit than any overdraft should be rejected. However if the card is run as credit, which it can be since it has a visa logo, then there's no way to force it to always decline the charge if there isn't enough money in the account.
Re: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic
#150Earlier quoted context omitted.
Can you elaborate on how you perceive the difference between the two examples here? Being financially foolish and negligent seem both to apply to your experience. "Was I being outright financially foolish ordering $100 bottles of Chardonnay at the club? Not at all. Was I being financially negligent ordering whatever small thing came my way that I wanted?"
A single large purchase is usually planned for and budgeted. E.g. buy computer for $2k and pay it off over the next couple of months $300/mo at a time. Though IMO, $100 of chardonnay at a club is pretty frivolous. Usually it is a death by a thousand cuts when it comes to racking up credit card debt. $20 for lunch, $50 for gas, $65 for some clothes, $100 for the electric bill. The problem is that pseudo-necessities li…
Yep. This is my failing as well. I don't carry a balance because thankfully, my income is modest but I keep recurring expenses to a pretty strict minimum (no car payment, cheap rent, only like $12k in college debt that I'm paying off, etc).
Still, when I go through mental phases of not caring/not paying attention, even though I'm paying off my balance and setting aside some savings every month, occasionally I look at my statement and think "holy shit, how did I spend $1500 that month?!"
Usually those are like the months where I bought one semi-pricey thing (under $500 but still not just groceries and bills) plus a load of Amazon or Adafruit or any number of little tools, toys, hobby supplies, lattes, bar tabs, etc.
Still no problems paying my credit card off every month because I've been there and I'm not going back. Still, it's very easy to lose track if you get spoiled and complacent. Sure, it's nice being able to spend a few hundred bucks on supplies every time I want to take on a new project around the house but those things really add up and eat into money I should be saving, investing, or using to pay off that minor college loan earlier.