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re: Americans' credit card debt reaches new record high
Posted on 2/17/25 at 2:29 pm to WestCoastAg
Posted on 2/17/25 at 2:29 pm to WestCoastAg
You're a big man, and you're right.
Headlines like the OP posted are designed to make us assume the worst, which isn't true.
Americans are wealthier than ever before, and we provide more charity and aid than any other country, and it isn't close
95% of us are current on all our bills, and 96% of us are employed.
Facts are boring, though.
Headlines like the OP posted are designed to make us assume the worst, which isn't true.
Americans are wealthier than ever before, and we provide more charity and aid than any other country, and it isn't close
95% of us are current on all our bills, and 96% of us are employed.
Facts are boring, though.
0
Posted on 2/17/25 at 4:40 pm to RLDSC FAN
Hey man it’s not my fault the Chiefs moneyline bet didn’t hit
Posted on 2/17/25 at 5:55 pm to Mingo Was His NameO
quote:
I mean, that’s not smart
That can only be true in retrospect over a given period.
If after all the tax and other costs are factored in you can make more money by investing the money freed up by borrowing money then it is indeed smart but no matter how you slice it that is a bet on the market that the money is invested in.
To use a slightly hyperbolic example my wife and I have had a block of money in high-risk equities and over the years it has performed extremely well. It would be easy to make the conclusion we should move all our money into high-risk equities now fast forward 15 years and it could be seen as genius or flat-out stupid depending on the market and our choices.
The borrow all you can so you have more to invest has its risks and potential rewards but not factoring in peace of mind is folly. While we aren't Dave Ramsey acolytes by any stretch we also don't pray at the alter of the likes of Bill Ackman.
Posted on 2/17/25 at 5:59 pm to RLDSC FAN
Not me
Posted on 2/17/25 at 6:00 pm to Codythetiger
quote:
It blows my mind to see stuff like this
shite I was listening to a podcast and one lady was over 4 million in debt and she said she had to ask her mom and dad for a 115k loan and she pulled up to her moms house in a 140k vehicle to ask
This sounds like my sister-in-law. My in-laws are morons for bailing them out, because they're destined for bankruptcy, but emotions are powerful
Posted on 2/17/25 at 6:00 pm to DrrTiger
quote:
Much like our federal government, Americans have a spending problem. If you don’t pay off the credit card bill each month, you can’t afford what you’re buying.
The median American lives paycheck to paycheck and has very little discretionary income. With the inflation of the last 5 years, most are just trying to keep it all going. So yeah, it’s a lot like our government, as run by our elected leaders
Posted on 2/17/25 at 6:01 pm to Obtuse1
quote:
That can only be true in retrospect over a given period. If after all the tax and other costs are factored in you can make more money by investing the money freed up by borrowing money then it is indeed smart but no matter how you slice it that is a bet on the market that the money is invested in.
Money has been cheap for almost 20 years and was free for nearly a decade
Posted on 2/17/25 at 6:03 pm to RLDSC FAN
My CC debt for my entire life…$0
Posted on 2/17/25 at 6:07 pm to cgrand
No mortgage or auto loan here. I am about to enter year 4 of that. Retired 4 years ago
Posted on 2/17/25 at 6:52 pm to Mingo Was His NameO
quote:
Money has been cheap for almost 20 years and was free for nearly a decade
That statement is the very root of the logical fallacy. There is a reason the SEC makes this disclaimer mandatory: past performance is not indicative of future results.
Borrowing money to invest, which is what you are doing effectively, can only be graded on a smart/not smart scale in retrospect. Anything in the future is a bet with possible upside and possible downside.
Posted on 2/17/25 at 6:53 pm to Obtuse1
quote:
There is a reason the SEC makes this disclaimer mandatory: past performance is not indicative of future results.
You’re aware there are assets other than securities, no?
quote:
Borrowing money to invest, which is what you are doing effectively, can only be graded on a smart/not smart scale in retrospect.
If you play the results and not the process I guess. If you have the capital and diversify your asset classes, it’s pretty damn hard to lose money when capital is almost free.
Thats a big part of the reason we’ve seen wealth disparity go up so much in the last 20 years. If you have assets that you can leverage as access to cheap or free capital you can continue to acquire assets. Tons of interesting content on that
This post was edited on 2/17/25 at 6:59 pm
Posted on 2/17/25 at 6:54 pm to RLDSC FAN
So glad I live debt free
Posted on 2/17/25 at 6:58 pm to RLDSC FAN
Trump says they are going to bring back debtors’ prisons.
Posted on 2/17/25 at 7:13 pm to Cosmo
So you pay cash for every single thing you've every purchased?
Or worse, you're one of those people that...
Writes checks..
Or worse, you're one of those people that...
Writes checks..
Posted on 2/17/25 at 7:16 pm to Ponchy Tiger
quote:
So glad I live debt free
So glad to have debt, I’ve made a lot of money over the last several years
Posted on 2/17/25 at 7:25 pm to RLDSC FAN
I got my balance down to 104% usage after making my payment this month. See you later poors 
Posted on 2/17/25 at 7:25 pm to RLDSC FAN
I use my card for everything to get points but I make sure to pay the minimum payment every month.
Posted on 2/17/25 at 7:49 pm to Mingo Was His NameO
It doesn't matter what the investment is.
You can lock in the cost of money but you can't lock in your returns even a "guaranteed" return. It is still a bet on the future, period.
The other thing you can't lock in is the tax code. Changes in the tax code can wipe out the advantage. As a simple example TCJA changed the deductibility of home mortgage interest. Home mortgage interest deductibility had been sacrosanct for decades but it changed overnight.
I am flummoxed that you can not see borrowing money to invest is a bet, there is risk. It has been a good bet for a long time but that doesn't mean it will be a good bet in the future. You are clearly letting your investment strategy cloud your objective side.
You can lock in the cost of money but you can't lock in your returns even a "guaranteed" return. It is still a bet on the future, period.
The other thing you can't lock in is the tax code. Changes in the tax code can wipe out the advantage. As a simple example TCJA changed the deductibility of home mortgage interest. Home mortgage interest deductibility had been sacrosanct for decades but it changed overnight.
I am flummoxed that you can not see borrowing money to invest is a bet, there is risk. It has been a good bet for a long time but that doesn't mean it will be a good bet in the future. You are clearly letting your investment strategy cloud your objective side.
Posted on 2/17/25 at 7:56 pm to Obtuse1
quote:
You can lock in the cost of money but you can't lock in your returns even a "guaranteed" return.
My mortgage is 3%. My savings account is 4.2%. There’s absolutely zero risk
quote:
I am flummoxed that you can not see borrowing money to invest is a bet, there is risk.
If the money is free and there’s guaranteed returns, then there’s no risk.
Is there some risk to cheap money? Of course. But again, if you are diversifying asset classes and leveraging assets to acquire more assets, you’ve mitigated a shite ton of that
Posted on 2/17/25 at 8:02 pm to RLDSC FAN
For the first time in my life I have credit card debt
After settling with the insurance company after storm damage, we still owed $36k. I guess I could have moved money away from investments, but I just got a CC with 0% for 15 months. I’m paying that down now.
Not all CC debt is bad. Although I’m not sure my situation is the norm.
After settling with the insurance company after storm damage, we still owed $36k. I guess I could have moved money away from investments, but I just got a CC with 0% for 15 months. I’m paying that down now.
Not all CC debt is bad. Although I’m not sure my situation is the norm.
This post was edited on 2/17/25 at 8:03 pm
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