71–80 of 231 posts
Honest question. There aren't debit cards in the united states? They are simple plastic cards like credit carda but the bank is withdrawing your money directly from your account. There is not debt involved.
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…
Honest question. There aren't debit cards in the united states? They are simple plastic cards like credit carda but the bank is withdrawing your money directly from your account. There is not debt involved.
Even those of us who don't carry a balance often prefer credit for the additional fraud protection features. Can't do a chargeback on a debit card.
Not sure how often they can reclaim the money, and how often they just take the loss for better publicity.
Sorry for being pedantic, but the correct term is "could not care less". Otherwise you are suggesting that they do care.
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…
How do you pay rent with credit?
Earlier quoted context omitted.
> 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?
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…
There was an eerily prescient 2006 documentary about consumer credit called "Maxed Out," which featured a scene where someone recalled going to a conference of bank and credit card executives, and one of the CC CEOs plainly stated: "The bulk of our profits come from people making minimum payments for the rest of their lives." As for "pay-in-full" folks like you and me, credit card companies could care less. Whenever…
Earlier quoted context omitted.
There was an eerily prescient 2006 documentary about consumer credit called "Maxed Out," which featured a scene where someone recalled going to a conference of bank and credit card executives, and one of the CC CEOs plainly stated: "The bulk of our profits come from people making minimum payments for the rest of their lives." As for "pay-in-full" folks like you and me, credit card companies could care less. Whenever…
How do CC companies make money off of minimum payments? Don't they lose money by lending more than what's paid back?
It was interesting that a year ago the media was saying that Americans were pulling back on credit use, and paying it down. [1] I'm curious if that was honest reporting, or if something changed which caused people to spend more? [1] http://blogs.wsj.com/economics/2015/04/07/americans-pull-bac...
That is correct, the total outstanding debt was down as of year ago (side benefit of lower gas prices leaving more cash in the pockets of consumers), but the article mentions the banks have revved up their credit card distribution since then: "Because many creditworthy consumers are still cautious about spending, lenders are turning more aggressively to subprime borrowers. Lenders issued some 10.6 million general-pur…
We could hypothesize that credit card debt won't be as massive as mortgage debt and thus may not cause catastrophic events. However, on the flip side there is little to no collateral in credit card debt that a creditor would get in return of defaulting on your credit loan.
The more I look at credit debt, student loan debt, and fairly recently CDO's (Collateralized Debt Obligation) that banks are doing again we are setting ourselves up for failure again.
Anyone have any thoughts on all this?