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Started By
Message
re: Credit Card debt reaches $1.14 Trillion
Posted on 8/9/24 at 5:51 am to Who_Dat_Tiger
Posted on 8/9/24 at 5:51 am to Who_Dat_Tiger
quote:I couldn’t sleep at night. It’s discouraging how many people are in situations to create familial wealth and they just don’t know the basics. It’s not even necessarily a class thing. I’ve met smart, hardworking people with huge incomes that didn’t get it.
Don’t know how it was brought up but one of the couples we know told my wife they have over $30k of credit card debt and they already have 2 kids.
When I get to know people I usually gauge whether they have interest in talking about finances and if they do, I go the extra mile to make sure to share as much valuable information with them as I can, particularly if they’re young. The thought of good people working their asses off for 40 years without anything to show for it just kills me.
This post was edited on 8/9/24 at 5:57 am
0
Posted on 8/9/24 at 5:55 am to LSURussian
quote:
Not really important without knowing the delinquency rate.
Highest in over a decade and trending upward. LINK And this is with Unemployment on the rise.
Posted on 8/9/24 at 6:40 am to SloaneRanger
quote:
Does that include full balance payers? I can’t even imagine carrying credit card debt at the rates they are charging.
I was wondering the same thing.
Posted on 8/9/24 at 6:42 am to KWL85
quote:
Don't agree. Valid concern, but this debt number is concerning all on its own. Delinquency rates are rising, but the amount of debt is affecting disposable income regardless of delinquency rates. Consumer spending is a huge piece of GDP and people will start spending less soon. Unless they remain bat-shite crazy with their spending.
People will start spending less at some point, but total credit card debt is a pretty horrific indicator of basically anything.
Posted on 8/9/24 at 6:49 am to slackster
quote:quote:
Does that include full balance payers? I can’t even imagine carrying credit card debt at the rates they are charging.
I was wondering the same thing.
This.
I think older folks (Boomers) were very wary of credit cards in general. Societally they have become more acceptable and younger people now use them for rewards and points. Hell, it’s kind of dumb to not use a reward card now.
Posted on 8/9/24 at 7:50 am to RebelExpress38
I've said this for the past year or two... The continued climb of this has to be the biggest underlying bomb in the economy.
It explains why airplanes have been packed post-covid with a completely different crowd than was the norm pre. Everyone is charging everything with no concern of ever paying back.
It explains why airplanes have been packed post-covid with a completely different crowd than was the norm pre. Everyone is charging everything with no concern of ever paying back.
Posted on 8/9/24 at 7:56 am to Tiger Attorney
quote:
There will be many used Yukons and Tahoes soon.
I’d say more like 2020 black Mercedes sedans and SUVs. With body damage and high mileage.
This post was edited on 8/9/24 at 8:33 am
Posted on 8/9/24 at 8:49 am to TJack
Those weeklong vacations in seaside for Instagram sure do cost money
Posted on 8/9/24 at 9:08 am to SloaneRanger
quote:
Does that include full balance payers? I can’t even imagine carrying credit card debt at the rates they are charging.
quote:
The average balance per consumer stands at $6,329, up 4.8% year over year, according to a separate quarterly credit industry insights report from TransUnion.
quote:
“But since early 2021, credit card balances have rocketed upward by 48%, fueled by a post-pandemic boom in services spending as well as high inflation and high interest rates,” he said.
LINK
That may not seem like much, but it breaks down to ~50% of card holders carrying a balance month-to-month.
quote:
Fifty percent of credit cardholders carry debt from month to month. That’s up from 44 percent in January and is the highest figure Bankrate has observed since March 2020, when 60 percent of cardholders carried debt from month to month.
LINK
At 20%+ interest, that can quickly become problematic. What would be a great datapoint (but which I can't seem to find) is the average amount of credit card debt carried over month-to-month.
Posted on 8/9/24 at 9:11 am to Suntiger
We carry roughly $15K in 0% credit card debt- A/C and daughter's braces. I'm sure there's a pretty high percentage of the population that will default on the 0% interest promotions, which is why more companies offer that deal, along with everything being SO DAMN EXPENSIVE
This post was edited on 8/9/24 at 9:12 am
Posted on 8/9/24 at 9:57 am to RebelExpress38
We should pass a law that our govt debt can't exceed consumer credit card debt.
Posted on 8/9/24 at 11:42 am to Bard
Curious do these reports include business credit cards?
Posted on 8/9/24 at 11:56 am to HYDRebs
quote:
Curious do these reports include business credit cards?
I believe the term "consumer" is used in this instance as a catchall to refer to both business and personal credit cards.
Posted on 8/9/24 at 1:21 pm to Suntiger
quote:
I think older folks (Boomers) were very wary of credit cards in general.
Wtf? Boomers invented credit card debt!
Posted on 8/9/24 at 1:35 pm to LSUGUMBO
quote:
along with everything being SO DAMN EXPENSIVE
The costs aren’t increasing.
The value of your dollar is decreasing.
Very important difference.
Posted on 8/9/24 at 2:07 pm to BamaCoaster
quote:
The costs aren’t increasing.
On a lot of things, the gross asking price is going up.
quote:
The value of your dollar is decreasing.
This is also true, for a double whammy.
Posted on 8/9/24 at 2:14 pm to Ace Midnight
OK, so what are the best companies to invest in with this at all time highs? Is it the card issuing companies, or someone different?
Posted on 8/9/24 at 2:18 pm to MikeD
Visa was a great buy for years. Not sure if that recommendation holds, but something to look into.
Keep in mind, though, when you buy Visa, you're buying credit card "use". You need to get the issuer stock (mainly banks) to get that sweet, sweet finance charge money.
And bank stocks are always complicated to analyze.
*This post is bullshite pontificating, not financial advice. Listening to Ace may be hazardous to your physical, psychological and financial health. Your mileage may vary. Offer not valid in Connecticut, California or Louisiana.
Keep in mind, though, when you buy Visa, you're buying credit card "use". You need to get the issuer stock (mainly banks) to get that sweet, sweet finance charge money.
And bank stocks are always complicated to analyze.
*This post is bullshite pontificating, not financial advice. Listening to Ace may be hazardous to your physical, psychological and financial health. Your mileage may vary. Offer not valid in Connecticut, California or Louisiana.
Posted on 8/9/24 at 2:28 pm to Ace Midnight
Visa seems to still be a good buy. It isn't going to have large swings up and down, but it's still trending up year over year. It's also a dividend stock although the dividend seems quite a bit on the low side.
Visa collects from both the cardholder and the merchant side. Visa isn't the financial backing for the account. It's the bank that is on the hook for the money. Visa is more responsible for the networking side of things, so even if there is a huge debt bubble, Visa would go down as a guilty by association, but their company doesn't live and die by account holders.
The same disclaimer should be applied to Whisky as it does Ace though.
Visa collects from both the cardholder and the merchant side. Visa isn't the financial backing for the account. It's the bank that is on the hook for the money. Visa is more responsible for the networking side of things, so even if there is a huge debt bubble, Visa would go down as a guilty by association, but their company doesn't live and die by account holders.
The same disclaimer should be applied to Whisky as it does Ace though.
Posted on 8/9/24 at 6:55 pm to kywildcatfanone
quote:
We should pass a law that our govt debt can't exceed consumer credit card debt.
We're past that to the point where your statement is absurd
Unless you mean the annual deficit
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