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

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

#61

Post by throwawaykeno »

empath75 wrote: post #17
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…

It's pretty great having a few grand in cash to throw around every month, but man do you live in a bubble if you think 'most' people do that.

I make less than 30k/year, so I'm not exactly rolling in it. Although I'm highly unusual because my very realistic earning potential is 3x what I currently make (STEM grad student).

Still, putting only rent on a CC = 1k+/mo where I live.

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

#62

Post by throwanem »

rm_-rf_slash wrote: post #54
throwanem wrote: post #49

Earlier quoted context omitted.

The initial usage is correct; credit card companies could care less about customers who pay off their balances every month, because such customers generate negligible revenue and are thus on the whole a nuisance.

If credit card processing fees are so high as to encourage small businesses to refuse payment by credit cards unless the total exceeds a minimum sum, I would hardly call that revenue "negligible." Otherwise, there would be no reason to offer (paltry) "rewards" points. Not to mention, people who regularly pay off their card in full are more able to spend far more than than their credit limit in a given month.

You're right, of course; I failed to remember that credit card issuers make money on both sides of the transaction. What I should've said is that customers who pay off every month generate negligible interest revenue, which makes them less valuable than those who revolve balances.

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

#63

Post by throwawaykeno »

harryh wrote: post #47
exhilaration wrote: post #43

Earlier quoted context omitted.

There's a few services that will act as intermediaries for you like https://www.plastiq.com/ which charges 2.5%. I learned about these services on Slickdeals in a discussion on how to quickly rack up credit card reward points. A Google search turns up this list http://www.doctorofcredit.com/complete-list-of-options-for-p... (I'm not affiliated with the author).

Ya, I've seen these. It seems like the fee would likely be more than the value of the reward making it a losing proposition? Just wondering if the OP found a better way.

The land lord I use allows paying with plastic. There is a ~2% fee. It's better than a wash financially, but just barely. But it's net win for me even when it's a wash because I don't have to worry about mailing a check every month.

FWIW in months when I buy expensive plane tickets or make reimbursed purchases I skip paying rent with the CC.

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

#66

Post by bchociej »

deathcakes wrote: post #50
n42 wrote: post #36

Sorry 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 always seen it as a pithy kind of humor, which it seems most other people either miss or disagree with.

"I could care less! (Yet here we are discussing it to death.)" or "They could care less... (less than we do / less than all this discussion suggests they might care)"

^ I think that's essentially how most people use it, mechanically, without thinking about it as much.

When I say it, I usually either mean it that way, or something along the lines of "I could care less! (And I wish I did!)"

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

#67

Post by askldfhjkasfhd »

joslin01 wrote: post #44

Gather round and I'll tell you a tale of how to lose at the credit card game. When I turned 18, I got my first credit card. I asked my father "good idea?" and he said yea, good to build up credit. Ok then. A week later, my new card with a whopping limit of $750. Never having experienced not paying with cash I had, it gave me an odd thrill and I went out to eat with my friends and joked "It's like free money!" And des…

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?"

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

#68

Post by Shivetya »

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:…

So what happens when you take away all business related credit card debt? Specifically anyone with a small business or related activity?

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

#69

Post by snuxoll »

throwawaykeno wrote: post #63
harryh wrote: post #47

Earlier quoted context omitted.

Ya, I've seen these. It seems like the fee would likely be more than the value of the reward making it a losing proposition? Just wondering if the OP found a better way.

The land lord I use allows paying with plastic. There is a ~2% fee. It's better than a wash financially, but just barely. But it's net win for me even when it's a wash because I don't have to worry about mailing a check every month. FWIW in months when I buy expensive plane tickets or make reimbursed purchases I skip paying rent with the CC.

I haven't mailed a rent check in quite some time, my old property management company used paylease to accept online rent payments ($2 fee to pay with ACH, but at least I didn't have to mail a check). My current rental I just pay the property owner directly through Wells Fargo SurePay to her Chase account, works great and no fees for either of us (which makes for a happy me not having to mail a check, and a happy property owner who doesn't have to lose a cent of her rent just to accept payment).

I do not miss mailing checks in, and I do not wish to ever do it again.

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

#70

Post by arbuge »

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.

In a country with a GDP per capita (not per adult, to be clear - this includes non-adults) of around $50k, why would you feel that's terrifying?
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