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Americans grappling with record-breaking credit card debt
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- Опубликовано: 4 июл 2023
- Americans are racking up all-time high levels of credit card debt. Ted Rossman, senior industry analyst for CreditCards.com, has tips if you're struggling with high balances.
#news #creditcard #debt
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My sister accumulated $50,000 worth of credit card debt and had to file bankruptcy. Now a year and a half later she is back up to almost $30,000 on credit cards. Some people just don’t learn.
Oof sounds like she needs to go to some kind of debtors anonymous meetings or something
What did she do to acquire all that debt? Spent it on makeup? She didn't care to find a sugar daddy?
It's an addiction 🤷
Rent with bills is 2600 add food water and gas you’re looking at 3500 X 12 months 18% = 49560 it costs $50000 to live a normal American lifestyle. Costs about the same for an inmate.
I have 5K on my card. I do not feel so bad at all.
I use credit card for EVERYTHING and still carry no balance. It’s simple, just don’t spend more than you make and you won’t have issues.
Same
smart man
Money Management is 👑
Same. I buy EVERYTHING with a credit card for the convenience and cashback points.
The simple key is _don't buy what you can't pay for with cash,_ and pay the full amount owed on time or even before it's due.
The cashback per annum on my card pays the annual fee plus a hefty bonus.
Hard times and absolute necessity is one thing, but I'll never understand people who buy stuff they can't afford just because a card makes it possible. Self discipline ain't that hard🤷♂️
Same here. I had a credit card in college too, but funny, my parents thought me not to live above my means, and to never buy something I couldn’t afford.
Thirty five years ago I had $300 on my credit card. My wife got mad and cut up our cards.
I’m very fortunate.
She is a keeper
Smart women !!!!
Good girl
Living the American Dream = Live Beyond Your Means
The American tax payers do because of the government...
@@mike7721sure.
Inevitable when wages are stagnant for 30 years in the land of the fee.
We are corporations with desires so there schemes work
@@mike7721 can't blame the government for your bad personal decisions.
I just became debt free 2 weeks ago, yes I paid it all off It’s amazing what just $15-20K in CC debt can do to you. Those agonizing years….I can never go back. Never…never…NEVER!!!!
Congratulations!
I’m glad I have never had debt
I’m in 10k
@@Rami-san damn! That sucks! I would get a second job just to pay that! I don’t like being in debt
I don’t think anyone does.
Hilarious that the credit card company offered someone who just graduated from college a $20K limit. Nothing like a young person (or young couple) starting off in life with a 30 year mortgage, $50k in college loans, and $20k in credit card debit. Then comes marriage...then comes kids. A life of debt.
Debt slavery that they signed up for. They signed the paperwork and spent the money. Basically enslaving themselves
When my wife graduated in our mid 20s, we over 200k in student loan, over 170k in mortgage. Credit card company still approved us for 30k limit and called us multiple times asking if we want them to increase the limit.
What's crazy is that it's the students who signed up for the card and put the debt on the card. So why again should anyone care??
@@callyvinn After you and your wife went into $200k worth of debt, you still sat and seriously thought that a lender would care for your future and well being?
Bruh im 25 and the most ive ever been approved for is 10k lol. But the mortgage is pretty hard to not have a debt to. The only people I know without a mortage are those who have been alive for 5+ decades.
Having a reoccurring CC debt shouldn’t be the norm. It’s a slippery slope to get in and digging your way out will cost you
Paying upfront is always best imo.
@@el4242use my credit card because my debit card spending limit is too low for my income. Seriously its embarrassing that almost every weekend when I was building my house I had to call the bank to increase the spending limit on my debit card. They would always ask how much I need, and id just yelled on the phone one day at home depot FOR THE LOVE OF GOD JUST ADD 3 ZEROS TO WHATEVER LIMIT I HAVE. Havent had a problem since lol. Edit: actually it actually did come up when I made a $20k student loan payment this Monday. I calmly explained to the new banker, why the F[_]#k will you people not let me spend my on damn money. no response, transaction was approved.
Or you can pay the last month’s statement balance and get a 30 day interest free loan that yields a couple percent in cash back points.
Though, that requires some semblance of financial literacy.
Title should read "Stupid Americans Refuse To Live Below Their Means".
@@InternetUser._ I also wonder how much of this debt is tied to interest free promos for x months, I hold this type of debt which isn't really debt since I can pay it off today if I need to.
He forgot to mention there are usually balance transfer fees or 3-5% depending on the card. Mind you, 3-5% with a 0% APR for up to 21 months is still a better deal than paying 20% APR a year
and it's liikely that when you transfer, you'll just leave that balance like you did before.
Still in debt no matter how u slice it.
That doesn't matter if your debts so bad that it needs to be transferred. If you don't, you'll easily pay more with interest.
i always do balance transfers with 0% fees and 0% APR, but I do that to take cash out to invest :D
@@NomadWalker-io3neIs there such thing as 0% transfer fee? I thought Btranfers are somewhat has some fee
“People buy things they don't need, with money they don't have, to impress people they don't like."
Literally my parents
I had $2,500 debt (first credit card 😅). The daily stress I got looking at that number was insane. Luckily, it’s paid off now…I breathed the deepest sigh of relief and knocked out that day 😂
👏👏👏
Try having student loans totaling $33,000+, then paying it off. The lenders will offer to THROW money at you...
yea stress waste so much energy and time i realized
@@reubenmorris487 congrats on paying it off though! :)
Jeez. Well, as long as they balance is steadily going down and you use credit the right way, that’s great. I’m planning to pay down all debts by next year and start clean.
NO ONE CAN AFFORD ANYTHING ANYMORE. THE COST OF LIVING IS TOO HIGH.
We put $40-50k on our card every year. Balance is paid down to $0 every month. Had to learn the hard way. Defaulted twice on CC balances in my 20s ($5k each time). Learning to design a budget and documenting every use of the CC on a spreadsheet made the difference.
How did you bounce back after those defaults how did you get them off your credit
That’s what my mom did
I have a serious question. What is the real problem with having credit card debt? Companies are not coming to garnish wages for the payment. There really is no reason to pay it back. When you have gone over your limits you can declare bankruptcy and start over again. So why are people freaking out about credit card debt when you can keep doing it with no consequences?
@@Boc3phu5
Why don't you Google "consequences of filing bankruptcy" or watch a few RUclips videos from experts.
@@Boc3phu5 when you owe a lot - or you are using above a certain percentage of your available balance on your credit card (which changes with the limit on the card) other lenders wont issue you more credit. So lets say your card is nearly maxed out and you are paying a mortgage on your home and you have a car loan and you go to apply for financing on a new expensive tech item you want, or maybe you need a new AC for your home, you're much less likely to get approved since the financial institution handling the new loan sees you as a high risk because you are already maxed out everywhere else. This is the problem with credit card debt. You are floating more than you can afford to pay off in a reasonable amount of time, therefore impeding your ability to make new purchases or even in a pinch emergency purchases etc. Declaring bankruptcy isn't something you ever want to do... It tarnishes your future for any type of lending.
My cc score is 800+ i only use it for everyday expenses such as Gas, Grocery, and other smaller expenses so i could collect rewards points and improve my score then pay off entire balance by due dates.
Recently i went to my local car dealership to purchase a 30K vehicle. When sales person checked my credits history and immediately noticed my 800+ score she came back smiling ear to ear with popcorn, cookies, and coffee (for free).
I told her if i get a good deal i will finance the vehicle. I used my good cc score to negotiate the best deal possible and changed my mind at the very last minute and paid the entire purchase in cash 26K(no sales tax state). CC is a game and you must learn the rules and use it to your advantage.
I like telling people who are fixing to run my credit that, I'm a little embarrassed that my credit isn't perfect. When they come back and tell me that my score came back in the 840's. Then I tell them, See its not perfect.
The highest I've ever gotten was an 848 and tried everything to get it to 850 and never could. Now I'm probably in the 830's because I love taking advantage of the Get our card, charge $1500. in 3 months and get a $300/$500. credit. I'm going to take advantage of free money whenever it's offered.
Yeah my score is 815. I make wayyyy more than what I spend so paying off my cards is never an issue. People buy so much useless crap
Negotiate the price before running your credit to avoid an unwanted inquiry. Just tell them that you have excellent credit. Show them the score in your financial app if really necessary.
Those things are usually free at a dealership.
This past 4th of July weekend travel was reported to be “Record Breaking”.
Then folks return home after a weekend of spending $$$ on fun & games to whine about being broke.
sounds like the guys across the street whining about their student loans yet have the money to get Uber eats twice a day.
They gonna claim it was a special month. Even tho every month gives them a reason to spend
Who really cares?
@@Shaolin91z we care because it hurts the economy, causes great economic hardship, and leads to "poor" behavior that prevents social and economic mobility.
I don't think so in our area. usually most holidays the main freeway is backed up for miles. Not one day this past weekend did it even slow down. No one went anywhere far. Cost too much for gas, hotel, and food out.
Live within your means, and aim to become debt free. I concede that I have one credit card, particularly for the "free" cash rewards. I pay it off each month and never carry a balance. It takes discipline, but it is totally possible! (P.S. I'm a teacher, and have learned to enjoy life responsibly on a modest salary)
Sadly, living beyond your means has become the American way. It's a choice!
Would you be able to live life the same way with a husband and kids?
True but most people only learn this after going through credit card debt, those debt collectors and garnishing of pay will help you learn feel fast how to keep yourself in check but some don’t care and will keep incurring debt cause to them as long as they owe you, you’ll never go broke
@@lovelydiva06 a professor in college once told me, "Do not buy something you cannot afford", which I took very seriously. Got 5 credit cards with a 105k credit limit combined, and they're always paid off in full each month.
It's easy to say that but a lot of people don't have the funds to just pay it off, I don't intend on having cards again, since I can't afford it at all.
I work in debt settlement and you would be surprised how many people think $30k is credit card debt is ok.
I paid off all my credit card debt in 2014. I haven't owned a credit card since.
🎉
it's better to use your credit card to get rewards and pay it off several times a month. I get 2-5% cash back depending on which type of store I use it at.
@@chobiden7770 Agree. We pay our CC monthly and last year bought 2K in Apple products with cash back. We are sticking it to the man.
@@chobiden7770 You seem to be faithful on as how to use it wisely but, alas, many (most?) don't.
Then you aren’t building your credit
My CC debt went to zero during the pandemic - and I'd been carrying balances for the longest time. There just wasn't anything to spend it on other than food and essentials. I realize now that zero balance is the way it should've been all along. Trying to keep it at $0 CC balance month to month.
A dirty trick they use is taking forever to process your charges so you can't ever tell what your full balance is month to month.
I’m gay
@@John-du2mqI’m gay
@@taurusman8832same, and?
@@John-du2mqhate this. Annoys me beyond belief. Granted I set auto pay full balance so secure there. But anytime my balance goes over 1k I immediately pay it off manually. It annoys me to see it that high. I can pay everything cash but I like those points. In 2 years I've racked up $1.5k worth in points. Worth even more if I use it instead for travel, which I do.
One of my coworkers ran up credit card bills well over $100,000. Her philosophy: I never had much as a child; I was adopted; my adoptive father was an alcoholic; my adoptive mother was sick all the time and I had to take care of her. I'm entitled to whatever I want when I want it. No one else is going to take care of me. Why should I do without when I've had a hard life? When she died from ovarian cancer 21 years ago, there was next to nothing left in her estate. Everything had to be sold to pay for credit card debt. Even a few weeks before she died, she was still making purchases and putting them on her credit cards.
Hey Sherry after taking your advice and getting the 51 point increase to my fico score, Mysticflip claimed my increase came from my car payment balance decreasing which I believe was a lie, hoping I'd not realized the real reason it went down and try the process all over again.....makes me realize these companies really wanna keep us down and indebted to them...am I crazy for thinking this way?
I love it when I see people financing vacations on a credit card and putting it up on Instagram as if they’re having this fabulous life when I know they are crushing on your dad while I’m over here and enjoying my boring life debt-free 😂
I’m gay
I put 3 vacations on a credit card this year.
And then I paid them off. The next week. What a concept.
I identify as a debt free black squirrel who’s non binary and loves nuts.
@@InternetUser._You are rare. Most people don’t have enough money in their bank accounts to pay cash to pay off their credit cards.
got 1100$ in rewards from my venture x card in 2023 alone. Paid off in full each time.... No instagram either lmao. Just ignore the bums on instagram a good travel card makes travel so much better.
The financial pressure to go into debt in the USA is immense. I went bankrupt living in the USA as a college graduate. I left the USA and started over in life, and I have never owed anyone a dime ever since. The key was leaving the financial pressures of America behind.
It’s the high inflation rate plus high interest rates, plus no salary raises, especially for educators
Especially educators? Uh.. No, how about everybody is suffering.
It’s the behavior that causes the issue not the interest rate. A balance transfer only helps if you have changes the behavior otherwise you will just be back where you were originally.
“Necessities are the primary cause of credit card debt “ - this video.
Went through a divorce 6 months before the pandemic and my ex left me with all the bills and our son, then I took my little sister in from an abusive relationship. It was tough, and I was about $600 in the hole every month for a little over a year. Refinanced my house, then moved to the south, got remarried, and now I have just refinanced 20k onto a personal loan at 13% and I got another 8k on a 0% interest credit card for 18 months. I am currently throwing about $1000 a month at it and I just got a raise and a promotion so I will be throwing all that extra money at it as well. Life happens. A lot of people had a hard time during the pandemic. I can't wait to make that last payment on my debt.
nice work! I wish you all the best
I filed for bankruptcy 3 years ago, today, I have a 750 credit score, no credit card debt! It's not hard, just takes discipline!
Americans spend money on what feels good not what is good... Money is a psychological game, except it deals with numbers and it obeys math :)
It’s easier to stay out of debt then get out of debt. I couldn’t imagine having a lot of debt. Budgeting sucks but it’s less stress in the end
It’s simple, if you can’t pay for it, don’t use a credit card
exactly this is why i stay away from credit cards
@@angel-ij4xv As long as you use it responsibly and pay it off each month, you're fine.
Having credit card debt is like the feeling you get when you know you need to shower or brush your teeth. How can you go on day to day with this disgusting feeling? How do you get used to it?
Once you take care of your financial hygiene you can go about your day.
I do not believe those are in any way analogous 😂😂😂 don’t skip personal hygiene for all our sakes 🤦♀️😀
I pay off my cc on weekly bases. Never carry balance from month to month
The only Americans really open to talking about credit card debt, are those who either don't have it... or have caught crazy and are doing everything possible to rid thems3lves of it
True. I think Americans know when they are behaving badly and don't want to admit it.
i use one for my business and gas and my wife uses hers for family things.both paid off every month and have gotten enough points for a family 4 vacation in December to fly for free or just about..good for us
Credit cards are great as long as you can pay off the statement balance in full each month. Otherwise, they're a really bad deal.
Almost true. While I pay mine off every month occasionally I make a huge purchase and don't mind taking 3 or 4 months to pay it off. Example. I had a $6000. Fence installed and charged it. I get cash back and it's a little easier on my brain to not cough up $6000. in one shot.
@@fauxque5057how much interest did you pay after settling the debt 💸?
Using credit cards are great as long as you pay bill in full every month. I get over $1000/yr from using credit cards. Haven't paid interest in 20+ yrs.
I hope others watching this, especially the younger generation, learn from this video not to rack up unneccessary debt. I know some people don't have spending discipline. I still have a credit card, but rarely use it. All my previous credit card debt is paid off thankfully. I use to have two credit cards, but now I just have one. Yeah we should always save for emergencies which is how credit cards can come in handy. After all, I originally didn't even want a credit card cause I knew that would put me in automatic debt.
The best way to avoid credit card is to stop using the CCs, or only purchase what you can afford to pay in full by the end of the month. Stop trying to keep up with other people.
I refuse to have a credit card.
Good for you! Yes!
Living the American dream aint cheap and the U.S. economy depends on you spending money you dont have...THANK YOU FOR YOUR SERVICE😂😂😂
😂
Your welcome.
I haven't had any consumer debt for eight years. My mortgage will be paid off in the next year or two. I have a cash reserve for emergencies, and I have no open credit cards. It's hard to do, but freeing at the same time. I'm never going back!
A balance transfer card is a great idea, but the real problem is not in paying off debt, but incurring debt in the first place. Granted, we can go into debt for unforeseen circumstances (illness, car repair, etc.), but if we don't learn to control our impulse spending, then we will get in the same trouble again. I finally learned my lesson after getting into debt trouble twice due to impulse spending. Pain is a great motivator, and today I don't revolve credit card debt.
Learning from other stories is a good motivator, too.
I have to share this. I immigrated from Bosnia in 1997. 26 years later I put myself trough nursing school, payed off one new car, payed off my $89 000 home that I bought 20 years ago, have 0 credit cards and my son is 4th year in college. I did it all by myself. My secret i always worked 2 jobs and can just relax now at age 49. Watch your spending
Why anyone would voluntarily go into debt for non essentials is mind boggling to me
I've literally made $4,350 from credit card sign up bonuses this year and paid zero interest. If you have excellent credit, you can really milk the system by churning high value cards as long as you're careful to pay everything back immediately.
Would be great as long as you dont get flagged for opening so many CC in a short amount of time.
If you’ve made $4300 from sign up bonuses then you must have exceedingly high income and credit scores.
@@IMAPOTATOZsome cards bonuses are $400-700.
If you open a lot of credit cards at once, they won’t issue you new ones.
You credit score drops 5 point for each hard Inquary.
Then credit cards might cut off the limits once they see you get too much new debt.
This game should be played carefully - I’m using this system for 20 years - I use 0% debt for investments only - buying houses, stock market etc….never for current expenses.
If 0% expired - I pay off whole amount and once all credit cards balance is zero, they start offering new checks with 0% for a year but 3-5% fees. For spending they give you bonus but cash cost you.
I just get 3 checks deposited for $31K for a year and put money in my HELOC which I use for investments. These $31K will make me at least $10K for the year I use them.
If you just spend credit cards for personal consumption- it’s just stupid…passive income should be spent - not credit cards
@@Michael-pi8ps Not sure how I got the $4350 number, sorry, it was $3950.... 5 cards over the past 6 months... Amex Platinum ($1700 sign up bonus), Amex Gold ($1100 sign up bonus), Chase Ink Business Cash ($750 sign up bonus), Chase Freedom Unlimited ($200 sign up bonus), Capital One SavorOne ($200 sign up bonus).
Put $17,000 on those cards to hit the sign up bonuses, booked a few trips and a cruise over the next 2 years and prepaid, plus utilities, food, and groceries over the past 6 months. Paid about $1000 in fees for the Amex Cards, but they come with perks worth about that, so I count that as a wash.
Started with an 830 credit score, down to 790 after the card binge and carrying a 5k balance on the Chase Ink (will pay it off next year, it has 12 months no interest, might as well let that 5k sit in a HYSA and earn a couple hundred bucks in interest until then).
@@c0horst Amex Platinum doesn’t have a $1700 sign up bonus. I know. Because I got the card this past December.
trying to keep up with the Jones's is how most people get in this mess, buy what you need, not what you want
My rule from day 1 (over 20 years ago) is don't charge on your CC anything you don't have the cash to pay for in one shot. There were some times when I couldn't buy the latest phone or TV..I had to work maybe a month or 2 to have the money ready and THEN buy it using my CC.
Following this rule has worked for me. I owe only what I spend during the month in groceries and bills which I charge to my CC for points and cash back. MY CC issuer has lost hundreds with me issuing me cash back checks over the years and they have NEVER collected any fees on me. This rule might seem ridiculous but its worked for me, I own my house and everything in it + my car outright.
If I could advise the younger generation I would say 2 things.
1. See my rule from day 1 explained above.
2. Do not fall into the trap of appearances. Don't buy a BMW when you can only afford a Honda or a 10k vacation in the Bahamas when you can barely pay your rent. Stop spending $800 every time a new phone comes out. Live within your means. Trying to keep appearances is the fastest way to credit card debt.
This! First gen American and grew up poor. I learned the value of a dollar. Now I'm 28, earn $115k, no debt, over 100k net worth so far. Got my first CC 2 years ago. Have $1.5k in points, worth more if used for travel which I do. I bought my car used cash, eat mostly at home, etc. I splurge on vacations that I can pay in cash, use the CC and pay it off the next day. No one is getting any interest from me. Live within your means.
46 and 100% debt free including home. Fully funded 401k and 2 roth IRAs. Bought house in 2010 recession at 315k now worth 1M because we were debt free. Dave Ramsey taught us everything we know.
It's an absolute must to use credit cards that earn rewards/cash back on ALL of your purchases that you otherwise would have made. Most people are leaving hundreds and even thousands on the table
Only - and only - if they can manage their use. So many can't. Myself, I can only manage two, maybe three cards, at a time. Others can manage a dozen or more.
@@scarling9367 that goes without saying!
@@Jiggy609 if it went without saying, Americans wouldn't have credit card debt and this video wouldn't have been made:-)
I only use a credit card to buy pet food. This stimulates/improves my credit and keeps me debt-free.
I do the same thing but just place car wash membership on my card. Easy pay off and keeps my account active.
You fall ill or are injured you can't work for 2-3 years what now? Still only for pet food?
If you cook and eat your pets....you won't need a credit card at all🤟
Always fun to hear people rationalize credit card use.
my credit card debt is 100 dollars, i am always shocked when i hear about people being in hundreds of thousands of dollars of debt...it frightens me that there is that level of irresponsibility out there
Not sure why this is never mentioned but there is typically a fee of 3% to 5% to transfer funds to a zero interest credit card.
Which basically averages to a 7%APR over the life of the “0% offer.” Guess nothing is free after all! 😩😂
I think you got the math backwards. It averages to less than 3-5% APR because you pay a one time fee but hold it for 15-21 months
What do you except when working people have the weakest minimum wage in history and can’t afford anything while the rich get richer?
More reason to not get credit card
Maybe if people stopped taking on insane amount of car debt and ordering door dash and Uber eats, they could get ahead
@@bigb63fsulmao
What’s ur budget (income and expenses per month)? We’re here to help you out!
@tommygogetter5992 but we need the latest $1400 Iphone to get us by until the next $1500 Iphone comes out in 6 months.
Sounds like a personal problem caused by poor choices
Absolutely, exuberant spending habits, a toxic consumerist culture that shames the frugal and champions the spendaholics
The USA has the highest average national credit card debt.
Other countries included in the comparison are Germany ($2,052), France ($1,616), and China ($1,728). The three countries with the lowest average national credit card debt are Italy ($811), Brazil ($497), and India ($302).
If only there was a way to help prevent poor financial decisions. Like mandatory finance classes in school...
That will never happen because the powers that be want the masses uneducated and in debt. People are easier to control that way!
lol, school would teach how to max out all the cards you can get. They would have pictures of Janet Yellen like she is a hero.... the back of the book would include tips on how to put purple hair dye and tattoos on your credit.
Current schools are where you learn to do the wrong things....
The high inflation over the past few years has been the final nail in the coffin for the American middle-class.
If one’s embarrassed about credit card debt, then its time to call dave ramsey show
I use cc in place of cash to earn cash back and points. The key is DON’T spend what you don’t have, thus the reason for $0 balances on all 14 cards.
14 CARDS!?? 😮
@@UnknownNev What's the issue? We get paid to use/have them!
14 cards?? your habits are good but 14 cards is alarming. not gonna tell anyone how to live their life tho
Applying for 14 cards dings your credit score for no good reason.
@@InternetUser._ that's not how it works. But most importantly don't carry a balance.
A debt relief program really helped me years ago by negotiating settlements with the credit card companies. I have been debt free for six months now and have a path to retirement. My credit score isn't great but I don't owe anybody anything.
Wonderful!
The problem is the credit card companies abusing the consumers. If you really track your balance monthly you will see your balance due goes down, but your monthly interest goes up. Why?
People rather pretend they are rich than to look poor
Where are all these credit card companies headquartered? Oh Delaware...
Anybody know a politician from there that could address this?
Minimalism and simple living is the key.
I have zero debt and my partner owes $600. It's a matter of living in your means, even if that means no new clothes this year, no going out this week, no eating lunch today.
I’ve always had a CC since I was 18yr old and I never owed them anything I always paid on time. My wife recently got a CC because she wanted to increase her credit score 6 months go by and I see her CC statement that thing was maxed out with multiple late fees and her only paying the minimum payments I cut up CC SO FAST…
Everyone thinking about what they're going to buy next check rather then worrying about how much you have now.
Why can't people just use it like a debit card and reap the travel rewards every month?
I once, had worked with someone that had a gambling habit and had bragged how he would receive cc offers in the mail, even though, he had maxed out his current ones with his gambling habit. Crazy!
who even approves these new credit limits???? I don't believe it if there is income verification and etc
That credit card debt got Americans in a rear naked choke and they're going to tap.😂
99.9% of Americans do not have a written budget. They literally have no clue how much they spend vs make each month. It’s insanity.
Facts.
Anybody notice that interest rates range from 18.9 to 28.9% on new cards. Unlimited and unregulated usury?
Haha what? There's a range because there is a range in creditworthiness. It's a highly regulates industry.
28.9 is for people who don't always pay their bills
in my country bank credit is regulated and exist limits they impose, now lender intitutions lie cetelem,bnp paribas cetelem charge higher interest rates because they have less criteria and bnpl is unregulatore.
Joe Biden family was paid off by banks to allow both high % and ch7 restrictions about 12 to 18 yrs ago. In 93 credit cards max inter3st was typically 6%. There was laws preventing gouging. Then they paid off Biden
People complain about stuff like this then complain when they don't get access to credit. Which is it? You can't have both. Either risky borrowers will have correspondingly high rates or they won't have access at all.
Keeping up with the Jones is making people go broke. Just do what Ramsey says and live below your means. And you should know how much debt your partner has before getting married. If you don’t know that then your relationship has poor communication skills, and that’s a sign you shouldn’t get married.
Well yeah, we were encouraged to spend every possible way. So many social media influncers did shopping hauls: Amazon, Sears, Shein,Target, Walmart, Walgreens, CVS, Micheals. All during lockdown. Tone deaf marketing Beyones with Tiffany, Bella Hadid for swarovski.
I never have a credit card, something is wrong with the system
The balance transfer advice is terrible. If somebody is already having problems managing their credit, the last thing they need is more of it.
the interest has people paying $3,000 balances for 14 years. Balance transfer allows one to use the zero interest period to pay literally the same debt, but faster and with money saved. They have to pay monthly anyway (the bill isn't going away) so why on earth would they not want to save money while doing it?
This option is of course only for people who are serious about getting rid of their debt and won't rack up more.
Yeah it can be. But I will say it worked for me when I had racked up some debt during hurricane Ida, living in a hotel for a month. I came back from that wanting to pay it off and save for emergencies the right way. So I transferred the balance to a 0% card at my bank and was able to pay it off. Ppl just need to be honest with themselves. If one has an addictive personality, then credit cards may not be for them
@@kialuvsyoo It's far more likely that this person will transfer the balance (paying 3-5% in the process), then rack up debt on the original cards, and now have twice the debt.
You're trying to solve a behavior problem with math. That never works.
It sounds to me like most people are in credit card debt because they refuse to live within their means and fail to create an emergency fund. Forcing them to use credit cards whenever the least little hiccup occurs.
Not necessarily. Ppl with emergency funds or high savings still overspend
@@yagga8885 I’m not sure which part of your comment my comment didn’t cover.
As a society we pretty much slipped back into all our old bad habits after Covid, finances same thing.
Inflation and rising housing prices are not helping either.
It's simple: don't have a credit card. But if you do, have a low limit & pay it off every month.
“I can barely make my CC minimum payments”
- Student Loans has entered the chat
Things happen called emergencies and most people don't even have $500 to cover unexpected costs. What are people supposed to do?
Do this wonderful thing called saving money
@@prevaloir5362 People do. Sometimes it's still not enough genius.
Sure things do come up… but if you look at the credit card statements for the vast majority of people, you won’t find medical bills, roof repairs, car repairs, etc… you’ll find restaurants, door dash, Best Buy, Amazon, etc. on those statements. So what are people to do? 1. Try to increase your wage as much as possible, easier said than done but not impossible. If you have no skills, try developing some by going to school or learning a trade. 2. BUDGET and STICK TO IT. Most straight forward part, but not many do it. Especially important during the times when you don’t have much money coming in 3. Save for an emergency fund so you don’t have to rely on taking on debt.
@@thehungrysage Oh yes! I found this financial audit channel with Caleb Connor and so many guests have all those things you mentioned on their statements. And their excuse is always "Retail therapy"
@@IMAPOTATOZ If you base your world view on what you see on random RUclips channels you probably have an IQ less than 75.
My sister makes 40,000 a year before taxes. She bought a car that costs 45,000 for a 72 year loan. She also has a credit card debt and student debt. She is always broke and only pays the minimum on all her debt.
Good Lord, she has a lot of balls. Talk about the courage to be poor…
72 YEARS?!
Don't worry, she will "marry up" and get some beta simp to pay off her debts like all women do. So bold. So brave.
That's why I don't use a credit card.
exactly same here stay away from them they want people to stay in debt so they can keep on paying interests on it
I grew up poor and before the credit card came 'online'. I was an adult before I had one but was 'psychologically tied' to cash and only cash. Guess I'm lucky about that. In my 77 tears I had a couple of cards and regular used them. Ironically, I had to take a loan for my used car and paid back two years in advance. My credit rate went down 56 points. The push to get credit and more credit is relentless. Can't believe that average interest is 20%?!!
I didn't realize they upped the interest rate since the pandemic. It used to be 17 percent now it's 25 percent! I won't ever buy anything on that one card.
@@chrissyellem7397my card could be 100% interest for all I care. As long as I know how to use it, the interest doesn’t matter.
Credit cards become an easy, expensive loan available in your pocket.
Don't treat it like a loan, treat it like your debit card.
I remember applying for a credit card in 2005 and getting denied as a yound adult. They hand them out like candy now
Don’t use cards if you can’t pay them off each month…it’s a huge trap…do without things before going into debt that has 24% interest rates.😮
That next! CREDIT card bailouts!
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Wow these bots even reply to themselves now. Ai integrated youtube bots😂
Great way to tell people youre taking credit to invest, stupid bots
Yeah right 👍🏼
It's important that everybody knows you can live life without a credit card. The rewards and cash back you earn can be great if you always pay your cards in full and on time every month, but any interest you pay will negate any of those benefits
If you're born In a wealthy family then yes
Pay it off every 2 - 3 days, doing this makes it hard to buy things you can't afford today.
“Consumers are still spending, economy is ‘good’ at this point.”
This is indicative that OUR COUNTRIES WEALTHIEST NEED TO BE PAYING TAXES SO WE CAN HAVE HELP WITH SOCIAL PROGRAMS LIKE HEALTHCARE AND EDUCATION SO WE CAN ACTUALLY LIVE WITHOUT DEBT.
Like Obama? The guy used a “minority stake” in NBA Africa as a loophole. When was the last time you saw an NBA game in Africa.
Something north of 80% of the federal government's tax revenue comes from the top 25% of tax units. Seems to me that the people with the highest incomes are paying for most of what the federal government does already.
I took out my 401k to pay down my debt now im about to get fired😅 life is wild
Yoo id get a financial advisor asap. If youre going to get fired, and you spent any non seasoned funds from your 401k, theyre gonna want that money back.
Learned the hard way: Live within your means and build a budget.
I am trying so hard to stop using my cc and cancel the debts but the situation is getting harder and harder every day. I ran out of savings a few months ago. I feel like we are drowning.
This is very exciting! I can't wait for a housing collapse
I want to thank everyone who has credit card debt for paying my $2500 a year travel credit for my vacation. I pay mine off every month and rack up lots of travel points.
Right??? 😂😂
merchant fees and thus the consumer pays for your little travel credit basically higher prices.
@@omi_god you’re incorrect and you’re also assuming you invest in the market and make a return. Market has risks and getting points has 0 risk. When you know how to use points they have much more value
@@P2B_JC exactly, the money is going towards expenses that aren’t for investing.
@@omi_god You're right, it isn't a gift. That's why we thanked the people that don't pay off their cards. They're the ones that pay for the adults to travel for free and get cashback on things we were already buying.
I have no debt whatsoever. I get phone calls from American Express because my aunt owes them $60,000. I have no idea how she racked up that much. I also get constant debt callers asking for my dad. Neither my dad nor my aunt lives with me.
Fake news. Homes in my neighborhood are still selling like hotcakes even at 7% interest rate. Cheapest home I seen is 800k. So just from that along. I don’t see Americans drowning in debt
Just can't believe this with Bidens greatest economy ever.
God, you republicans just have to make everything about politics. Don't you guys have a life outside of hating Biden?
No president can stop impulsive behaviors. Sadly you're not smart enough to realize that...
We should not be embarrassed. 60% of Americans make 40,000 dollars a year or less. The country could not survive without credit.