Posted on 08/03/2022 10:36:23 AM PDT by EBH
Credit card debt held by American households surged by 13% on an annualized basis in the second quarter, representing the sharpest climb since 1999 as consumers increasing rely on credit amid sky-high inflation.
The Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit released Tuesday shows total household debt reached $16.15 trillion at the end of June, an increase of $312 billion from the same quarter a year ago with mortgage, car loan and credit card balances all rising
Mortgage balances climbed by $207 billion to $11.39 trillion, auto loans rose by $33 billion to $199 billion, and credit card balances increased by $46 billion and are now just below pre-pandemic levels, according to the report. Student loan balances, which have been on pause since early on in the pandemic, remained relatively unchanged.
All told, non-housing balances increased by $103 billion (2.4%) from the first quarter, the greatest quarterly increase since 2016.
(Excerpt) Read more at foxbusiness.com ...
I put about $35,000 a year on my main credit card. I pay every possible bill with it. Utilities, gas, insurance, retail shopping, etc. I pay it off every month. I make about $700 a year in non-taxable “cash back” rewards which I apply to my credit card bill. Been doing that for a long time.
We do something similar, but we pay off weekly and before the statement closes. We never charge more than we have in budgeted cash on hand at any given time. Savings does not get touched unless there is an emergency. We act like we are living paycheck to paycheck with a strict budget so we can put my entire salary into savings monthly. I know our practice is contrary to the notion that carrying a small balance improves your credit score, but my FICO 8 is 850 with Experian and close to that with TransUnion and Equifax.
Just call it a Student Loan and ask for forgiveness.
People are buying less but the less costs more so actually the economy is lower that the numbers show.
Occasionally we screw up and pay too early and the points aren't tabulated against the balance. I did that with some dental work and we lost some $$$ because I paid it off too soon.
Well, at least the money you will have to pay the credit cards back with will be worth less than the money you got from the credit cards to spend!
It’s up in line with (real) inflation. A huge number of people like me just put it all on the card and pay off at the end of the month, but that shows up in here - those goes up as inflation goes up. Given credit card debt is still below pre-pandemic while HH income is up nearly 18% in that time, not too worried about it.
I spent the time after Obama to pay off all credit. I had to do an audit for my job. I was surprised to ad up all assets and all debts and found out I’m in excellent shape for a downturn. For now.
The great reset:
Eliminate the national debt.
You’ll owe nothing
You’ll own nothing
You’ll be happy
Democrats build back better program is working like stepping into a well hid bear trap.
“A new credit crisis is looming.”
Der Fuhrer Biden can declare a credit card holiday, where nobody with credit card debt has to pay a penny for two or three years. What’s wrong with that?
Seems to be working with student loan debt.
According to Starbucks today, sales of their idiotically expensive brew ROSE during the blowout in inflation these past months. Either they’re lying or people are really really stupid.
I haven’t bought breakfast in the 3 months since I got nailed $5.14 for coffee and a bagel. A ten-spot couldn’t buy coffee and a bagel for two. Maybe these Java addicts are putting it all on their credit card?
I do the same thing. Purchase my weekly groceries on the credit card, then pay off the balance every month. I haven’t paid a cent in interest, ever, and it keeps my credit rating high.
Generally whatever is on your statement is what is reported to the credit agencies. If you pull your credit report, it’ll be there. I put about $65k/yr on my credit cards +- between personal, work and rentals so it usually shows me with a $6-7k balance each month, even though I pay them in full. That’s why I’m not that worried about the total balance discussed in this article rising in line with inflation.
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