Americans now $1 Trillion in credit card debt.........

[Brute 23]

If I buy a car, its not because the bank is making me do it. If I buy a hamburger, its not because the banks say I have to.

Brute I don't understand your hatred for banks. They've loaned me money to buy caterpillars, backhoes, a farm etc. All of which made money for me.

Its kind of hard to buy something online, from places like Florida, and fly down there to pay cash. A credit or debit card makes life simple. But the bank doesn't tell me I gotta buy things.

Plenty of nickels in the checking account. I buy $150 item online, use a credit card, no big deal. When the bill comes I pay it. Pretty simple.

If I need to buy 50 head of cows, I can use my credit line. Go to the bank next week and flip around some savings to cover things. No big deal. Really not much different than using a credit card except it might actually cost a little bit.

I don't hate all banks. Just the mega banks that have lost common sense.

I do despise all cred card companies. I believe they do nothing positive for society and are bottom feeders. They are no different then pay day loans. They stole the play book from tobacco companies. They went after adults, then college kids, and now children.

People don't realize that when they take out debt, the treasury prints money to keep interest rates down, which devalues our dollar, which makes products seem more expensive, which makes debt increase, on and on and on.

It's not good for those of us who are responsible with are money to condone credit cards and this debt. When interest rates go up it will be us who will pay to bail the companies and people out who will default on all this debt.

I'm not against all debt but I am against credit card debt. I know it's easy and convienent to use credit cards but rarely is the easy, convienent way the best way long term.

Credit cards are the gateway drug to bad financial habits. Some people can manage it... but most cant.... 66% cant in fact.

 

[Nesikep]

Around $900 billion. The $1T number includes amounts that get paid monthly.

66% of people who have credit cards admit they have carried a balance.

The poor and young carry the largest balances.

either way, all that interest is money that's being removed from the economy.. means less spending in the end and everyone suffers from that

Jezz the money isn't burned it's just redistributed.

well it sure trickles down slower than it trickles up!

 

[Caustic Burno]

Lot more to suck up the trickle down.

 

[TexasBred]

Our whole business model is not designed around making money off of people in trouble, or people who make bad decisions, or people who don't know better. That is the difference. The CC companies prey on those people and the statistics show that.

There is one small line item on any statement of condition called "provision for loss". Every bank recognizes the risk on any loan whether it's a home loan, car loan or unpaid credit card balance. Oh and the credit card company is nothing but an extension of hte bank issuing it. That APR and late charge fee takes care of that. You probably never got an NSF fee either. Do you realize that most banks try to cover the entire payroll with NSF fees collected?? Is that dishonest or taking advantage of folks??

 

[TexasBred]

If I buy a car, its not because the bank is making me do it. If I buy a hamburger, its not because the banks say I have to.

Brute I don't understand your hatred for banks. They've loaned me money to buy caterpillars, backhoes, a farm etc. All of which made money for me.

Its kind of hard to buy something online, from places like Florida, and fly down there to pay cash. A credit or debit card makes life simple. But the bank doesn't tell me I gotta buy things.

Plenty of nickels in the checking account. I buy $150 item online, use a credit card, no big deal. When the bill comes I pay it. Pretty simple.

If I need to buy 50 head of cows, I can use my credit line. Go to the bank next week and flip around some savings to cover things. No big deal. Really not much different than using a credit card except it might actually cost a little bit.

I don't hate all banks. Just the mega banks that have lost common sense.

I do despise all cred card companies. I believe they do nothing positive for society and are bottom feeders. They are no different then pay day loans. They stole the play book from tobacco companies. They went after adults, then college kids, and now children.

People don't realize that when they take out debt, the treasury prints money to keep interest rates down, which devalues our dollar, which makes products seem more expensive, which makes debt increase, on and on and on.

It's not good for those of us who are responsible with are money to condone credit cards and this debt. When interest rates go up it will be us who will pay to bail the companies and people out who will default on all this debt.

I'm not against all debt but I am against credit card debt. I know it's easy and convienent to use credit cards but rarely is the easy, convienent way the best way long term.

Credit cards are the gateway drug to bad financial habits. Some people can manage it... but most cant.... 66% cant in fact.

With all due respect and no offense intended "you have no idea what you're talking about".

 

[Brute 23]

By all means... explain it

 

[Hunter]

People don't realize that when they take out debt, the treasury prints money to keep interest rates down, which devalues our dollar, which makes products seem more expensive, which makes debt increase, on and on and on.

Brute, do you mind explaining why the treasury prints money if an individual takes on debt?
Maybe, I am just not following what you mean.
I do agree that when the treasury prints money it could devalue your dollar.

 

[Hunter]

Our whole business model is not designed around making money off of people in trouble, or people who make bad decisions, or people who don't know better. That is the difference. The CC companies prey on those people and the statistics show that.

There is one small line item on any statement of condition called "provision for loss". Every bank recognizes the risk on any loan whether it's a home loan, car loan or unpaid credit card balance. Oh and the credit card company is nothing but an extension of hte bank issuing it. That APR and late charge fee takes care of that. You probably never got an NSF fee either. Do you realize that most banks try to cover the entire payroll with NSF fees collected?? Is that dishonest or taking advantage of folks??

How you saying JPMC, Citi, Wells Fargo or maybe even Frost Bank try to cover all of their employees pay with NSF fees collected?

 

[Brute 23]

People don't realize that when they take out debt, the treasury prints money to keep interest rates down, which devalues our dollar, which makes products seem more expensive, which makes debt increase, on and on and on.

Brute, do you mind explaining why the treasury prints money if an individual takes on debt?
Maybe, I am just not following what you mean.
I do agree that when the treasury prints money it could devalue your dollar.

Better wording than I can type.

Explanation of federal funds rate decisions. When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. ... Reducing the Fed Funds Rate makes money cheaper, allowing an influx of credit into the economy through all types of loans.

Its a viscous cycle. People say that the cost of living has gone up but the pay hasn't. That is because our dollar is devalued. Our dollar is devalued because the fed has to keep interest rates low because Americans worship debt.

My problem with the mega banks is they have changed the way they do things now because they know the government will bail them out. They are making loans on vehicles, houses, etc that should not be made.

We just got out of the housing crises because they got laxed on the lending and what do they do... over extend themselves in O&G.

Our country is going down the tubes financially because people can not get their spending under control. The idea that its their money to do with what they want does not fly any more because we are having to prop them back up after their bad decisions.

 

[Anonymous]

Pretty well sums the problem. Government cant quit spending. If there were no bailouts, corporate or individual, people would be forced to live within their means. Good article: I ran into a couple of GOP senators the other day. They were talking about the fall of the Roman Empire (who knew senators might actually discuss history?). One senator made the point that Rome's fall corresponded with a loss of values, which of course has some merit. But that's missing the bigger picture. I responded that perhaps their decline had something to do with being overextended militarily, knowing that they would likely reject this point since it might imply that the United States, also, might be faced with the same future.
History certainly has lessons, but it's amazing that after 2,000 years we still draw different conclusions. I couldn't resist to jab them a little: "You know our own decline will ultimately come when we can't manage our debt."

This one I think some senators do get, at least on some level. But they can't push past their own parochialism or pet issues and causes to see that everything must be on the table in order to prevent our economy from being crushed under our massive debt burden.

I left them this last salvo to ponder: "If the GOP insists on exceeding the budget caps by over $100 billion in new military spending, it is hard to argue that the Republican Party really cares about the debt." They didn't look eager to continue the conversation — their only response was to amiably smile and let my volley dangle unanswered.

Minutes later, I ran into a Democrat senator in leadership. I continued my previous conversation about debt with him. "I hope your caucus will unite in opposing the GOP push to bust the budget caps on military spending." He slyly grinned and responded, "We're kind of in the opposite place as you are. We are fine with busting the caps on military spending as long as we get our share of domestic spending."

And there you have it: the dirty little secret in Washington.

Republicans say they want to cut domestic spending, but they won't because they've made a deal with the Democrats — if Democrats vote to raise military spending, Republicans will vote to raise domestic spending. The dirty little secret is that all spending goes up, all the time, and both parties are to blame.

Both sides want to spend money, but for different pet causes. The compromise: Both will agree to increase rather than decrease spending. We will once again move in the wrong direction on spending and debt because of a corrupt bargain among swamp-dwelling politicians.

It's shameful, and people should be outraged. It appears that nobody, or virtually nobody, in Congress really cares about the debt or our children's future. Sure, Democrats claim to care when it is a convenient excuse to oppose tax cuts, but they are noticeably quiet about the debt when it comes to spending bills.

When I forced a vote recently on obeying the "pay as you go" rule, no Democrats, and only seven Republicans, joined me. Less than 10 percent of the Senate appears to actually care about the debt.

As the debt inexorably grows, we face a future where interest on the national debt threatens to crowd out legitimate government expenditures. Maintaining a debt that equals our gross national product is dangerous and ultimately will threaten to bring about America's decline.

I, for one, hope for the day of compromise, both parties realizing that all spending must slow and come into balance with revenue. Given prevailing attitudes in Congress, I fear spending restraint will not occur until our decline manifests, a time that may be too late to save us from ourselves.

We are $20 trillion in debt and counting. Our nation's politicians are addicted to spending, and they need to be put in treatment. Will the voters force them to stop? When will the intervention come to save our economy and our country?

At every opportunity in the coming year, I will fight for caps on spending, for following our budget, and for fiscal sanity to take hold in Congress.

Sen. Rand Paul, a Republican, is the junior U.S. senator from Kentucky. You can follow him on Twitter: @RandPaul.

 

[Nesikep]

And that is why I like Rand Paul...
That "dirty little secret" is not limited to the US, it's EVERYWHERE... and probably in households too.. "You can have your new shoes if I get new fishing tackle"

 

[TexasBred]

Our whole business model is not designed around making money off of people in trouble, or people who make bad decisions, or people who don't know better. That is the difference. The CC companies prey on those people and the statistics show that.

There is one small line item on any statement of condition called "provision for loss". Every bank recognizes the risk on any loan whether it's a home loan, car loan or unpaid credit card balance. Oh and the credit card company is nothing but an extension of hte bank issuing it. That APR and late charge fee takes care of that. You probably never got an NSF fee either. Do you realize that most banks try to cover the entire payroll with NSF fees collected?? Is that dishonest or taking advantage of folks??

How you saying JPMC, Citi, Wells Fargo or maybe even Frost Bank try to cover all of their employees pay with NSF fees collected?

Have you ever really given it a thought?? Stop and think about the hundreds of thousands of NSF items per day in one of these huge banks...some paid....some rejected but every item gets charged a fee. As easy for them to do it as it is the little bank on the corner with $10 million in assets.

 

[TexasBred]

[
My problem with the mega banks is they have changed the way they do things now because they know the government will bail them out. They are making loans on vehicles, houses, etc that should not be made.

We just got out of the housing crises because they got laxed on the lending and what do they do... over extend themselves in O&G.

Our country is going down the tubes financially because people can not get their spending under control. The idea that its their money to do with what they want does not fly any more because we are having to prop them back up after their bad decisions.

Most times bank management has little or no say so in this. Gov't regulations require it !!!!!!! On a local level fed funds rates have little impact other than how much a bank is going to earn on it's overnight investments in fed funds.

 

[Brute 23]

[
My problem with the mega banks is they have changed the way they do things now because they know the government will bail them out. They are making loans on vehicles, houses, etc that should not be made.

We just got out of the housing crises because they got laxed on the lending and what do they do... over extend themselves in O&G.

Our country is going down the tubes financially because people can not get their spending under control. The idea that its their money to do with what they want does not fly any more because we are having to prop them back up after their bad decisions.

Most times bank management has little or no say so in this. Gov't regulations require it !!!!!!! On a local level fed funds rates have little impact other than how much a bank is going to earn on it's overnight investments in fed funds.

What does that have to do with them giving a 30 year mortgage to some one for zero down or lending money to and O&G company based on market highs and acting like it will never fall?

They know better than any one what are high risk loans. They would not have made those loans 30 years ago.

Wells Fargo has so much exposure to O&G right now that can not not even forclose on these loans because they don't want to put it on the market and admit it's value. Showing this would destroy their balance sheet. Had oil not started heading up we would have seen banks in trouble.... AGAIN!

 

[Brute 23]

Debt has taken over our college students, our banks, and our government.... it's a house of cards.

Nothing will change until you and I start looking at each other and saying out loud debt is not ok.

 

[TexasBred]

Debt has taken over our college students, our banks, and our government.... it's a house of cards.

Nothing will change until you and I start looking at each other and saying out loud debt is not ok.

Are you capable of coughing up millions out of petty cash when you need it in the business?? If so then you're miles ahead of 99.9% of other businesses. Been a long time since I've examined a financial statement with zero liabilities (other than my own) and I'm not in any business either.

 

[Brute 23]

I have said already I'm not against all debt. I'm against cc debt, pay day loans, general consumer debt, and the loose lending practices many of the banks have adopted.

There are plenty of businesses that operate debt free and more could do it if they had to.

 

[ALACOWMAN]

If I buy a car, its not because the bank is making me do it. If I buy a hamburger, its not because the banks say I have to.

Brute I don't understand your hatred for banks. They've loaned me money to buy caterpillars, backhoes, a farm etc. All of which made money for me.

Its kind of hard to buy something online, from places like Florida, and fly down there to pay cash. A credit or debit card makes life simple. But the bank doesn't tell me I gotta buy things.

Plenty of nickels in the checking account. I buy $150 item online, use a credit card, no big deal. When the bill comes I pay it. Pretty simple.

Checked my balance the first of the week...told me there was several nickels left in it,,hand full of dimes..and a maybe couple quarters

 

[True Grit Farms]

I can't imagine life without a credit or debit card. It's bad enough having the diesel pump stop at $75, but it would really stink to have to wait in line to pay before you pump. I deal I cash if at all possible. The kids today aren't capable of counting money, dang shame.

 

[ddd75]

I can't imagine life without a credit or debit card. It's bad enough having the diesel pump stop at $75, but it would really stink to have to wait in line to pay before you pump. I deal I cash if at all possible. The kids today aren't capable of counting money, dang shame.

thats exactly why i hate paying in cash.. no one knows how to count. They'll just sit and look at the cash drawer for about 10 seconds like.. WTF?