Americans are holding more credit card debt now than ever. That’s an indisputable fact. Inflation is the big driver.
Makes complete sense - and lines up with what I've read. I guess my question is more about their method, like how do they determine the average balance? Is it a random snapshot of what everyone owes or is an average of the all the statement balances at any one period of time? I guess that's more what I was wondering.
Honestly, based on what I know, I'm not sure it matters if you're wanting to see how many Americans are paying off their balance each month just to rack up points. The vast majority of credit card holders do not pay their balances off each month. Only 38% of Consumers Pay Off Their Credit Card Bills in Full Each Month. Do These Things to Join Their Ranks.
I feel bad for people that have credit card debt- it's like the worst personal finance mistake to make. Some people do it out of necessity - others just carry balances for no fricken reason. It's crazy to me when people tell me that. Although, obviously, there are some loopholes on those interest payments. Like taking out a no interest card for the first year and making a big purchase and slowly paying it off, etc. I've def done that before when I had less money and it's super helpful.
Ultimately, those promotions are set up to lure consumers into debt they can't climb out of. Otherwise, credit card companies would be losing millions of dollars offering interest free debt for 12-24 months and cash back points on top. If you can manage those promotions properly as a consumer, yes, you win, but like a casino, the whole design by the credit card companies is a bet that you won't be able to pay that debt off before the zero interest period ends. I always feel dirty if I sign on for one of those promotions, because I know there's a credit card exec on the other end betting I won't be able to pay it off in time to benefit from the zero interest. I suspect a high number of consumers fall prey to the trap and end up paying hundreds, if not thousands in interest to the credit card company simply because they were not disciplined enough to hold off on a purchase they probably didn't need.
You have to be a disciplined consumer in this economic system. Otherwise your hard earned money is just lining someone else's pockets.
So back to the original thread topic - it doesn't look like a crash. Still time though - keep the dream alive. https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-live-08-08-2024
Credit card companies probably get much more money out of the merchants than they do from the customers. They get a percentage of every transaction. Why do you think that many places do not accept Amex? Why do you think that many gas stations charge a cheaper price for cash vs credit card (unless you are using their credit card)? Getting people hooked on the product is a key part of any business, whether it is drug dealing, credit carding, or selling groceries.
I’ve done the no interest credit card thing several times. I considered it using someone else’s money to invest.
I have no idea what the interest rate is on my two cards. I use an Amex for everything I can, USAA visa when Amex isn't accepted and pay them off every two weeks for the last several decades. That Amex has paid for or helped pay for dozens of trips.
Credit card debt is near historic lows when you compare it to people’s income. Household Debt Service Payments as a Percent of Disposable Personal Income
Usually these deals are for a year+ so I just sign up for that credit card and transfer all my card balances to it (the deal also includes free transfers) and then pay the minimum on that new card since, no reason to pay more than that at 0%. And then pay it off at the end of the trial period. Then cancel the card. Never noticed any relevant changes to my credit score playing that game.
I just came on to Too Hot to see Okie's new thread on the 700 point gain yesterday or his post for when the dow hit 40,000 for the first time ever. He must still be putting those together.
These threads look as stupid as the Matt Bevin victory party one when the inevitable rebound happens.
Man, that Bevins victory party thread was classic. Stupid as hell, but so iconically stupid that most remember it years later. Is that guy posting now under a different username? I can't remember.
Oh damn. Wasn't being sarcastic, I was off the boards for quite awhile and missed a bunch of stuff. That is amazing and explains so much. Thanks.
