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Credit-Card Debt Approaching Pre-Collapse High — Thanks To Subprime Lending
HotAir ^ | May 20, 2016 | Ed Morrissey

Posted on 05/21/2016 11:10:01 AM PDT by MarvinStinson

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1 posted on 05/21/2016 11:10:01 AM PDT by MarvinStinson
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To: stephenjohnbanker

bmp


2 posted on 05/21/2016 11:10:51 AM PDT by MarvinStinson
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To: MarvinStinson

Is that like those $300 limit credit cards that come pre-loaded with $295 in fees? Seems like you’d be better off with a $300 bank account and the debit card.


3 posted on 05/21/2016 11:14:55 AM PDT by Larry Lucido
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To: MarvinStinson

while credit card balances may be at an all time high, that is not necessarily a bad thing. I purchase almost everything on a credit card and write one or two checks per month. I buy lots of stuff at one or two merchants and from on line vendors. it is easier to buy on the plastic than to fool with cash or manually write checks.

Given the increase in online sales it logically follows that card charges have increased.

I never see my vendor payments because they are deposited directly

the old rules no longer completely apply


4 posted on 05/21/2016 11:20:36 AM PDT by Thibodeaux (leading from behind is following)
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To: Thibodeaux

You’re not carrying a balance, though, and that’s what has increased, returning to pre-crash levels.


5 posted on 05/21/2016 11:22:37 AM PDT by RegulatorCountry
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To: Thibodeaux

the old rules no longer completely apply


Like with all things in life, one size does not fit all.

Same with credit.

There are two problems (as I see it) with credit cards.

One, if you do not pay it off each month, then everything you buy is more expensive (the interest charges).

Two, if you carry a large balance on your credit card (besides the interest) you are risking your future if you should lose your income.

Every one makes up their own mind as to how much credit they can afford to carry (personally I think it should be zero), just be sure you understand the risk.


6 posted on 05/21/2016 11:28:33 AM PDT by CIB-173RDABN (The government is the problem, not the solution.)
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To: MarvinStinson

If the U.S. government can borrow its self into prosperity, why can’t we? /sarc


7 posted on 05/21/2016 11:37:40 AM PDT by Dalberg-Acton
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To: Thibodeaux
Is there aa difference between credit card balances and credit card debt?
8 posted on 05/21/2016 11:41:04 AM PDT by MarvinStinson
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To: CIB-173RDABN

We have one credit card which we have for emergency only. Have never used it. Received 14 offers in the mail this past week inviting us to apply for another one. Opened one just for grins - up to 24.75% if we have their card and carry a balance. Just ridiculous. Shredded it along with the rest.


9 posted on 05/21/2016 11:41:37 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: CIB-173RDABN

Well, this is part of discussions of good debt/bad debt.

Mortgage debt is ok, because you are acquiring a tangible asset. Assuming you can’t just pay cash for a house, mortgage debt is a responsible form of debt.

Credit card debt is troublesome because if you can’t afford to pay the bill each month, you run up high interest charges. And I would question if you can afford or need the items you buy with a credit card, if you can’t afford to pay off each month.

I may get flamed, but, even a certain amount of student loan debt can be good debt, if, you are getting an education and training in a field for which you will qualify for a good paying job, which enables you to repay that student loan debt.


10 posted on 05/21/2016 11:41:44 AM PDT by Dilbert San Diego
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To: Thibodeaux
“I purchase almost everything on a credit card and write one or two checks per month. I buy lots of stuff at one or two merchants and from on line vendors. it is easier to buy on the plastic than to fool with cash or manually write checks.”

So do we, but we pay off our credit cards every month, so there's never an outstanding balance on which they can charge their usurious interest rates. That isn't credit card debt as I see it. It's simply using the cards as a convenience and getting the use of their money for as much as 30 days. We even put as much as the dealer would allow on our last new car purchase (I think it was $8,000). So we got airline miles or whatever it was that the card was offering, but when the bill came at the end of the month, we paid it in full. And the funny thing is that these kinds of purchases actually strengthen your Credit Score. Right now I'm at 855.

11 posted on 05/21/2016 11:43:56 AM PDT by vette6387
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To: CIB-173RDABN

years ago, I had only two credit cards. Both were very high interest (36%) and the interest started the second you made the charge. If you wanted to pay off the statement balance, you had to call them to tack on the interest charges, otherwise the interest would draw interest the next month).

thank God those cards are paid off and the accounts were closed years ago (I closed them because even if I didn’t put a penny on either card, there was a $20 per month (per card) “maintenance fee” and each card carried a $150 per year membership fee. If I didn’t put a penny on them, I owed them $780 per year).

Nowadays I have four cards and haven’t paid interest in over two years. I got a zero interest card (for 15 months) from my bank and just paid it off since interest kicks in next month.

I also just got another interest free card with a five figure limit but only owe $1000 on it. I could pay it off with savings, but why? It’s interest free.

I do put about $10 on each paid off card per month just to have the timer reset. (they can cancel you for inactivity), but all balances are paid off monthly (thus, no interest).

Thank God the girlfriend is gone. She sucked me dry (and not in a good way). Ran up my credit cards, ran me into debt. I’m now in the best financial shape of my life, although I should have started this years ago.


12 posted on 05/21/2016 11:46:19 AM PDT by GeorgiaDawg32 (www.greenhornshooting.com - Professional handgun training.)
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To: GeorgiaDawg32

It feels good doesn’t it.

If you are in debt you put yourself into bondage to those that hold the debt. You were in worse shape than I was when I woke up to what my credit cards were costing me. I have not paid interest on a credit card for close to 30 years.

Oh, by the way, the credit card companies still make money when I charge (the merchants has to give up about 5%, also I believe it is in their contract that they can not give a discount for cash payment.


13 posted on 05/21/2016 11:56:55 AM PDT by CIB-173RDABN (The government is the problem, not the solution.)
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To: Dilbert San Diego
"I may get flamed, but, even a certain amount of student loan debt can be good debt, if, you are getting an education and training in a field for which you will qualify for a good paying job, which enables you to repay that student loan debt.".

I agree. A good degree in a STEM field can yield good results income-wise. Alternatively, my 3 daughters majored in marketing and all three would up with exceptional sales jobs. My oldest daughter (who worked full time to pay as she went) had a job with a base of $55,000 but her commissions put her into the $140,000-$175,000 per year range. she worked has a*s off, but it's paid off. I recently saw a thing on facebook about a female student who is for bernie because she acquired $226,000 in student debt. She majored in "Speech Pathology" and is worried she'll never make enough to begin to pay on the loan. she wants Bernie to forgive it. Now, I'm not a rocket scientist, but a speech pathology major will never make $25k per year in their life. Add normal everyday expenses (rent, car payment, cell phone, heat, etc.) and she's in a bad way. My view? She shoulda thought about that beforehand. She's now stuck and wants everyone else to pay the bill.

14 posted on 05/21/2016 11:57:30 AM PDT by GeorgiaDawg32 (www.greenhornshooting.com - Professional handgun training.)
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To: CIB-173RDABN

It feels damn good.

I’m now getting mail solicitations from a certain company I shall not name, for one of their Platinum Preferred/Freedom cards (or a very close name to it).

I would NEVER take their card even if they gave me a $100,000 limit and 50 years interest free because, years ago I got a card from Washington Mutual at 9.99%. This company bought WM and within 30 days closed the account and upped the rate to 32%. I had a $5800 balance on a $6000 card.

I called them and they basically told me to go to he*l. I swore if I was ever in a position to get their card, I’d tell them to pound sand.

I’m doing that and THAT, my friend, feels good.


15 posted on 05/21/2016 12:02:57 PM PDT by GeorgiaDawg32 (www.greenhornshooting.com - Professional handgun training.)
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To: Thibodeaux

No, this is about balances going higher and higher partly due to interest and fees not about monthly promptly paid-off charges.


16 posted on 05/21/2016 12:05:56 PM PDT by steve86 (Prophecies of Maelmhaedhoc OMorgair (Latin form: Malachy)northeast hiy)
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To: MarvinStinson

If the government can do it, why can’t everyone else?


17 posted on 05/21/2016 12:07:22 PM PDT by dfwgator
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To: Thibodeaux

Do they count credit cards that get paid off every month as credit card debt? I didn’t think they did.


18 posted on 05/21/2016 12:27:36 PM PDT by grania
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To: CIB-173RDABN

I don’t understand credit card debt that one pays interest on, not at all. With the current and maybe forever no interest paid on savings, it makes no sense to be paying the bank high interest....it’s IMPOSSIBLE to catch up in the future.


19 posted on 05/21/2016 12:30:21 PM PDT by grania
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To: MarvinStinson

Ford is offering 0% financing for 72 months plus $1000 (plus a military/first responder rebate) on new F-150s.

Tell me their sales aren’t down.


20 posted on 05/21/2016 1:34:38 PM PDT by moovova
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