People Getting Stretched to Limit. Credit Card Balances Soar.

[AuEagle]

Tough times for many. 

Average Credit Card Debt In US Now Soaring Past $6,500 | ZeroHedge

[Grayfox54]

Been there, done that. Once I was drowning in credit card debt. Its especially hard on young people trying to get themselves established in this world. The interest charges will eat you up. 

But many do it to themselves. They want what they want and they want it right now! I think all of us have had to stand in a checkout line waiting while the person in front of us tries multiple credit cards to make their purchase. Or worse are the people who buy little items such as one soft drink or fast food and pay with a credit card. That sort of thing adds up real quick.  

I got myself out of credit card debt some 30 years ago. Today I have one credit card and its used primarily for internet purchases. I also pay off the balance every month.  For most everyday items, I pay cash. If I don't have enough cash, I just don't buy it. 

[DHF]

1 hour ago, Grayfox54 said:

But many do it to themselves. They want what they want and they want it right now!

Second this.  I am sure there are a lot of people hurting it this jacked up BS economy but it only takes a little applied observation to notice the money people are hemorrhaging one stuff they don't actually need or at least more expensive versions of stuff they may need (vehicles, homes, food choices, etc...)

[gregintenn]

Interest and late fees are a tax on people who can’t do math.

[ArmyBrat61]

I DEMAND CREDIT CARD DEBT FORGIVENESS!!!!!! 

Sleepy Joe needs to pay my cards off.....or pay me my student loan back.

[Grayfox54]

33 minutes ago, gregintenn said:

Interest and late fees are a tax on people who can’t do math.

With our current educational system, that's pretty much everybody under 40. 

[deerslayer]

2 hours ago, gregintenn said:

Interest and late fees are a tax on people who can’t do math.

And lottery tickets.  

[gregintenn]

6 hours ago, deerslayer said:

And lottery tickets.  

Definitely! Many thanks to those who do buy them. You helped send my kids through college.

[gregintenn]

8 hours ago, Grayfox54 said:

With our current educational system, that's pretty much everybody under 40. 

Some things a parent should step up for.

[peejman]

23 hours ago, Grayfox54 said:

With our current educational system, that's pretty much everybody under 40. 

My teenagers are quite capable of the math necessary to balance a check book. 

My parents told me to think of it not as a credit card, but a convenience card. I have the money, just not in my pocket. 

I've only paid interest on 1 monthly bill in 30+ years.  I forgot to pay it when our 2nd kid was little.  I looked at the bill the next month and was shocked because it was double what it normally is. It didn't take long to figure out why, I just plain forgot to pay it. So I got to add a little stupid tax to the bill.   Oops. 

I plan to get my older boy a credit card in the near term. He's driving and hoping for a summer job so it's time to introduce him to personal finance that's more involved than the peanut butter jar in his room. 

[AuEagle]

Those that spend irresponsibly deserve what they get. 

The people I was referring to are the ones who can't afford everyday things & are forced to charge these things & then can't pay off balance. They end up with huge interest charges.

We use ours for gas, groceries,etc & are blessed to have the funds to pay off balance every month.

BTW-Fjb for putting people in this situation.

Edited May 13 by AuEagle

[Grayfox54]

1 hour ago, AuEagle said:

The people I was referring to are the ones who can't afford everyday things & are forced to charge these things & then can't pay off balance. They end up with huge interest charges.

Oh, I get that. That's exactly what happened to me. We were young, two small kids and even though we both worked, things were tight. We managed as long as things went well. But that rarely happened. Something would break, the kids need clothes, yadda, yadda, yadda. Unexpected expenses just came along and always at the wrong time. 

Back then, credit cards were hard to get. There were long forms to fill out and they actually checked up on you. Many people got declined. I did get a MasterCard which I used sparingly.  But then I managed to hit the mother load. I got a Sears credit card! You could get anything you needed at Sears! It saved my butt many times. But it also drowned me in credit card debt. The interest was outrageous! The day I finally paid it off was a huge celebration for me. I canceled the card and cut it up in little pieces with a huge smile on my face. 

Now days they hand out credit cards to anybody and everybody. They don't care at all. Here, take it, no problem. Enjoy! 

I can certainly understand how well meaning people can fall into the trap. I was one of them. 

But I still believe that most people today did it to themselves. Financial responsibility seems to go right over many peoples heads now. 

 

[gun sane]

I fell into the credit card/interest bondage when I was single.  I spent a lot trying to impress the young ladies.  I finally married a frugal woman who minored in math in college.  She watches the bills and checkbook like a hawk.  We live modestly and don't go for all the latest and greatest gizmos that lure others into debt.  We bought used cars and she is a Golden Gloves champ at negotiating the drive-out price.  We do give a good sum to missions and other charitable works, but have never had need of nothing except God's good grace.  My advice to young men is to marry a Proverbs 31 woman and keep her for better or worse until you ride the big, black hearse.

Edited May 13 by gun sane

[LangdoniousRex]

Increased consumer spending is just another sign that Bidenomics is working and the economy is booming. If you think otherwise then you are a bigot, racist, transphobe.

[Johnny Rotten]

20 hours ago, gregintenn said:

Definitely! Many thanks to those who do buy them. You helped send my kids through college.

The trick is getting .gov to give it back to you

[maroonandwhite]

I really hate how the companies offer 0% for like 15 months on new accounts. They fall just short of outright encouraging irresponsible spending then reap the harvest a year later. 

[maroonandwhite]

I am not at all in favor of the gov protecting us from ourselves but I find it extremely hypocritical to have all of the fair lending mandates in place for housing, yet no acknowledgement of the predatory consumer lending. 

[Garufa]

Credit cards have been a scourge on society since the first charge plates were invented by department stores.

Abuse of credit cards and the debt incurred is nothing new, it’s been going on for decades.  Blaming the government for that is just silly, you either live within your means or don’t.  Sure, the government can and should crack down on predatory lending practices which is exactly what credit card companies are in the business of, but then again, capitalism, responsibility, and all that jazz.

I listened to my elders growing up and do not exceed my means.  Fortunately, I have a good income, but it has not been easy dealing with the crap that comes along with that.

Long story short, I have no sympathy for those in CC debt.  I have dealt with it among family members so have seen the absolutely devastating effects it can have on one’s life and future.

[LangdoniousRex]

There is a lot of blame of the financial system and government when, ultimately, the responsibility is of the individual. Most people have no clue what "living within their means" actually means. They think that Starbucks, McDonalds, Chipotle, Doordash, Uber Eats, etc, etc, are mandatory requirements in their lives and there is no way to convince them otherwise. They think they would rather be homeless than to give up any takeout food or drink, that's the level of delusion they are at. 

The modern credit system as we know it has been around for over 40 years. Payday loans at least 20 years that I know of. The interest rates are right there in the paperwork the individual signs. It's pretty basic math. Plenty of time and opportunity to educate but based on the spending habits of average Americans, that education may as well not exist. 

 If people actively choose to be debt slaves then that is their choice. I seem to remember a time when actions had consequences but the more days go, that concept seems to be going the way of the dodo bird.

[deerslayer]

I have little sympathy for financially irresponsible people who get wrapped up in credit card debt.  People who suddenly lose their jobs or have unforeseen massive medical expenses are an entirely different matter.  

[Darrell]

I knew people who depended on overtime to make payments on their cars, trucks, etc. I really had little sympathy when they found themselves in trouble when the OT dried up.  But you have to hand it to American marketing; they have a lot of people believing that they have to have a new car, new cell phone, or latest and greatest gadget to be happy. Even within our hobby, there are a lot of elitists who might turn up their nose at a budget firearm. When I was a kid, I often fished with old, rusty hooks and a rusty bolt for a sinker, and I did pretty well. Now you can't catch a crappie unless you have a $200 rod.

[deerslayer]

58 minutes ago, Darrell said:

I knew people who depended on overtime to make payments on their cars, trucks, etc. I really had little sympathy when they found themselves in trouble when the OT dried up.  

I work with them.  
 

58 minutes ago, Darrell said:

Even within our hobby, there are a lot of elitists who might turn up their nose at a budget firearm. 

 

[-boatman-]

2 hours ago, Darrell said:

I knew people who depended on overtime to make payments on their cars, trucks, etc. I really had little sympathy when they found themselves in trouble when the OT dried up.  But you have to hand it to American marketing; they have a lot of people believing that they have to have a new car, new cell phone, or latest and greatest gadget to be happy. Even within our hobby, there are a lot of elitists who might turn up their nose at a budget firearm. When I was a kid, I often fished with old, rusty hooks and a rusty bolt for a sinker, and I did pretty well. Now you can't catch a crappie unless you have a $200 rod.

I worked with a guy like that back in the 1980's. He worked eight days a week if he could get it while his wife sat at home and shopped with credit cards. He had 15k in credit card debt back then. The craziest thing was after he fell off his house and broke his leg his wife came to worke and asked if there was any work he could do with his broke leg. He should have cut the cards up and told her to get a job long before it got to that point.

[AuEagle]

Credit cards are fine when used responsibly, just like firearms. 

Use them irresponsibly, disaster can follow. 

 The higher credit card balances are being fed by the high inflation.

 

[AuEagle]

Americans are going into debt to buy groceries, research finds (cnbc.com)