Posted on 09/12/2023 11:57:53 AM PDT by thegagline
American households now have an average of $10,170 credit card debt, as record numbers say they are worried about being cut off from access to loans.
Data from the New York Federal Reserve shows nationwide credit card debt swelled by $43 billion in the second quarter of the year - the second largest increase on record. *** But some states are faring much worse than others as households in Hawaii have the highest debt currently, according to fresh analysis by WalletHub. Families in the Aloha state have $10,637 in credit card loans on average.
It was followed by Alaska, California and New Jersey where average debts were $10,142, $9,796 and $9,468 respectively.
By contrast, Wisconsin has the lowest debts of any state, with the average household owing $6,208 on their cards.
But the data also shows debts are rising quickest in California where residents added over $5 billion to their arrears in the second quarter of the year. Each household added around $409 individually.
It was followed by California, Texas and New York where households all gained an extra $375 to their credit card debts in the second quarter of the year.
***
Fears have been mounting over America's growing debt after Fed data showed it had reached $1 trillion for the first time in history.
And the issue is compounded by the fact that credit card interest rates are now at an eye-watering 28 percent.
The interest charged by credit card companies is loosely guided by the Federal Reserve's benchmark rate which last month soared to a 22-year high.
***
It has fueled calls to curb interest on such loans. Yesterday Missouri Republican Sen. Josh Hawley urged the Government to install an 18 percent cap on credit card rates as he hit out at providers.
***
(Excerpt) Read more at dailymail.co.uk ...
It is both disturbing and yet typical that a Republican would viscerally call for government intervention regarding private contracts. The Republican are devoid of fiscal conservatives and are unfortunately moving towards embracing fascism.
I’m below average.
Pay off all credit cards every month.......................
Biden’s America
Under achievers!
Same - free 30 day float basically.
Student loans on the other hand...
(No, I *refuse* to take any assistance for that! Biden can take his "forgiveness" and slam it up his @$$!!)
I’ve simply used credit cards for the convenience and not to finance my interests.
Hmmm. I see a pattern. Red states lowest. Blue states highest.
I see the inevitable solution, Red states bail out Blue states.
I might carry a higher balance because I charge all of my living expenses and then autopay them at the end of the month (for the bonus rewards).
The real question is what is the average amount of revolving credit that is being carried over to the next month? I want to see that analysis.
-PJ
I cannot understand carrying credit card debt. The last time I did not pay off in 30 days was in 1990. Even then I knew I only needed to carry the debt for a few months.
Someone else must have 20K in card debt, because I have none.
I used to pay off my cards every month. Since everything is online now, I pay off my cards every day. It has the effect of living on what you have, as if it were a debit card, while simultaneously gaining the rewards offered by the card companies.
Unless you get a windfall, it is impossible to pay off 10,000 in debt. I was fortunate to be run over by a golf cart in a cross walk.
We got destroyed with medical debt for the birth of my second child. We carried a lot of those bills on credit cards.
Once they were paid off, we cut them up.
With the exception of vacations, it’s cash only. Once we get home, card is paid in full the next month.
Curious why you do that, when if you pay off you balance every month you pay the same amount.
I saw a documentary a while back about how credit card companies work. It was old - Elizabeth Warren actually looked young in it. But one of the insiders interviewed said that the industry considers those of us who pay it all off each month to be ‘deadbeats’.
They aren’t making any money on us :-)
Then there are at least two of us.
Totally debt-free since May 2020.
I suppose this article describes debt not paid off each month? If the charges are paid off each month then there is not much of a problem.
Conversely if someone is paying 20% or so annualized interest on $10K then that is a bit scary to me. God help them get their debt in order.
It was followed by Alaska, California and New Jersey where average debts were $10,142, $9,796 and $9,468 respectively.
Three of the four highest credit card debt states are deep Biden-blue states!
Borrowing at 4% and lending at 28% is a great deal for the lender - if it gets paid back. I'm wondering what Tony Soprano charged - although he could always break his customer's arm if the customer didn't pay.
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