But the dumbocrats keep telling us that consumer spending is at an all
time high so that means the economy is thriving.
Idiocy.

'US credit card debt just hit a new record of $1.17 trillion — how can
Americans dig their way out of this hole?'

<https://www.aol.com/finance/us-credit-card-debt-just-124700087.html>

't’s no surprise that Americans often rely heavily on credit cards to
make ends meet. And with a recent period of rampant inflation, it’s
equally unsurprising that credit card balances are on the rise.

In the third quarter of 2024, U.S. credit card balances rose by $24
billion, reaching the $1.17 trillion mark — the highest level recorded
by the Fed in 20 years.

It’s also worth noting that consumer debt is on the rise. Mortgage
balances hit $12.59 trillion during the third quarter of the year, while
auto loan balances reached $1.64 trillion.

On a positive note, there’s been a small improvement in credit card
delinquency rates. In the third quarter of 2024, 8.8% of balances became
delinquent, versus 9.1% in the previous quarter.

However, U.S. consumers still carry a lot of credit card debt, and given
the interest rates associated with credit cards, this can be extremely
detrimental to their financial health. So, it’s important to try to
break that cycle.

An unsettling trend
Surging inflation and rising costs have forced many consumers deeper
into credit card debt. According to TransUnion, the average credit card
borrower owed $6,380 in the third quarter of 2024 — up from $6,088 one
year ago and $4,869 three years ago.

The number of Americans carrying credit card balances has also
increased. As of the same quarter, that number totaled 171.4 million,
compared to 168.6 million a year before and 155.7 million in the third
quarter of 2021.

It's not just that Americans are juggling higher levels of debt — many
are struggling to pay their bills without it.

A November 2024 survey by Achieve found that 28% of Americans saw their
debt increase over the past three months. Among them, 37% said they
couldn't make ends meet without taking on additional debt.

Child-related expenses contributed to the growing debt burden, with 16%
of those surveyed citing that as a reason. According to Care.com's 2024
Cost of Care Report, the average cost of infant daycare rose to $321 per
week in 2023, compared to $284 the previous year.

Read more: I'm 49 years old and have nothing saved for retirement — what
should I do? Don't panic. Here are 3 of the easiest ways you can catch
up (and fast)

Breaking the cycle of credit card debt
The problem with credit card debt is twofold. First, the longer you
carry a balance (or multiple balances), the more interest you accrue.

Carrying high credit card debt relative to your total credit limit can
damage your credit score, making borrowing money even more expensive and
trapping you in a terrible cycle.

If you owe a lot of money on your credit cards now, it's important to
take control and plan a debt payoff plan. You certainly have options.
One is to cut back on spending or increase your income with a side
hustle. Then tackle your existing credit card balances using either the
avalanche method or the snowball method.

The avalanche method prioritizes paying off your credit cards with the
highest interest rates first, and then working your way down toward your
cards with the lowest interest rates. With the snowball method, you're
focusing on your smallest balances first and then moving on to your
larger ones.

From a purely financial standpoint, the avalanche method can result in
the most savings. But from a psychological standpoint, you may have an
easier time with the snowball method, since you'll see a near-term
impact when those smaller debts disappear.

Another option is to consolidate your balances onto a single card with a
0% introductory interest rate. This gives you a break from racking up
more interest while you work to reduce the total amount you owe. You can
also consolidate your debt into a personal loan, which gives you the
benefit of fixed monthly payments until your balance is whittled down to
$0. You’re likely to enjoy a lower interest rate on your debt with a
personal loan than what your credit cards are charging you, though the
rate you qualify for will hinge largely on your credit score.

Finally, if you own a home, you have equity, you can look to consolidate
your credit card debt into a home equity loan. You may, depending on
your credit score, enjoy an equally or even more competitive interest
rate compared to a personal loan.

But be careful, as you’re putting your home on the line. Falling behind
on home equity loan payments could lead to foreclosure.

On 12/19/2024 9:33 AM, John Smyth wrote:
> But the dumbocrats keep telling us that consumer spending is at an all
> time high so that means the economy is thriving.
> Idiocy.
>
> 'US credit card debt just hit a new record of $1.17 trillion — how can
> Americans dig their way out of this hole?'
>
> <https://www.aol.com/finance/us-credit-card-debt-just-124700087.html>
>
> 't’s no surprise that Americans often rely heavily on credit cards to
> make ends meet. And with a recent period of rampant inflation, it’s
> equally unsurprising that credit card balances are on the rise.
>
> In the third quarter of 2024, U.S. credit card balances rose by $24
> billion, reaching the $1.17 trillion mark — the highest level recorded
> by the Fed in 20 years.
>
>
> It’s also worth noting that consumer debt is on the rise. Mortgage
> balances hit $12.59 trillion during the third quarter of the year, while
> auto loan balances reached $1.64 trillion.
>
> On a positive note, there’s been a small improvement in credit card
> delinquency rates. In the third quarter of 2024, 8.8% of balances became
> delinquent, versus 9.1% in the previous quarter.
>
> However, U.S. consumers still carry a lot of credit card debt, and given
> the interest rates associated with credit cards, this can be extremely
> detrimental to their financial health. So, it’s important to try to
> break that cycle.
>
> An unsettling trend
> Surging inflation and rising costs have forced many consumers deeper
> into credit card debt. According to TransUnion, the average credit card
> borrower owed $6,380 in the third quarter of 2024 — up from $6,088 one
> year ago and $4,869 three years ago.
>
> The number of Americans carrying credit card balances has also
> increased. As of the same quarter, that number totaled 171.4 million,
> compared to 168.6 million a year before and 155.7 million in the third
> quarter of 2021.
>
> It's not just that Americans are juggling higher levels of debt — many
> are struggling to pay their bills without it.
>
> A November 2024 survey by Achieve found that 28% of Americans saw their
> debt increase over the past three months. Among them, 37% said they
> couldn't make ends meet without taking on additional debt.
>
> Child-related expenses contributed to the growing debt burden, with 16%
> of those surveyed citing that as a reason. According to Care.com's 2024
> Cost of Care Report, the average cost of infant daycare rose to $321 per
> week in 2023, compared to $284 the previous year.
>
> Read more: I'm 49 years old and have nothing saved for retirement — what
> should I do? Don't panic. Here are 3 of the easiest ways you can catch
> up (and fast)
>
> Breaking the cycle of credit card debt
> The problem with credit card debt is twofold. First, the longer you
> carry a balance (or multiple balances), the more interest you accrue.
>
> Carrying high credit card debt relative to your total credit limit can
> damage your credit score, making borrowing money even more expensive and
> trapping you in a terrible cycle.
>
> If you owe a lot of money on your credit cards now, it's important to
> take control and plan a debt payoff plan. You certainly have options.
> One is to cut back on spending or increase your income with a side
> hustle. Then tackle your existing credit card balances using either the
> avalanche method or the snowball method.
>
> The avalanche method prioritizes paying off your credit cards with the
> highest interest rates first, and then working your way down toward your
> cards with the lowest interest rates. With the snowball method, you're
> focusing on your smallest balances first and then moving on to your
> larger ones.
>
> From a purely financial standpoint, the avalanche method can result in
> the most savings. But from a psychological standpoint, you may have an
> easier time with the snowball method, since you'll see a near-term
> impact when those smaller debts disappear.
>
> Another option is to consolidate your balances onto a single card with a
> 0% introductory interest rate. This gives you a break from racking up
> more interest while you work to reduce the total amount you owe. You can
> also consolidate your debt into a personal loan, which gives you the
> benefit of fixed monthly payments until your balance is whittled down to
> $0. You’re likely to enjoy a lower interest rate on your debt with a
> personal loan than what your credit cards are charging you, though the
> rate you qualify for will hinge largely on your credit score.
>
> Finally, if you own a home, you have equity, you can look to consolidate
> your credit card debt into a home equity loan. You may, depending on
> your credit score, enjoy an equally or even more competitive interest
> rate compared to a personal loan.
>
> But be careful, as you’re putting your home on the line. Falling behind
> on home equity loan payments could lead to foreclosure.
>

You know what's coming next, don't you? When the bills come due the
whiners will be calling for a govt bailout. And when Trump and whatever
GOP members who are left with a spine push back the cries of 'the gop
wants you to starve, die, bla bla bla.' Bank on it.

Yak wrote:
> You know what's coming next, don't you? When the bills come due
> the whiners will be calling for a govt bailout. And when Trump and
> whatever GOP members who are left with a spine push back the cries
> of 'the gop wants you to starve, die, bla bla bla.' Bank on it.

Credit cards are unsecured debt. This can be resolved by a wave of
bankruptcies. Or just refuse to pay: creditors would have to go to
court to find something to seize.

--
Siri Seal of Disavowal #000-001. Disavowed. Denied. @
'I desire mercy, not sacrifice.' /|\
The Church of the Holey Apple .signature 3.2 / \
of Discordian Mysteries. This post insults Islam. Mohamed

On 12/19/24 6:02 PM, Siri Cruise wrote:
> Yak wrote:
>> You know what's coming next, don't you? When the bills come due the
>> whiners will be calling for a govt bailout. And when Trump and
>> whatever GOP members who are left with a spine push back the cries of
>> 'the gop wants you to starve, die, bla bla bla.' Bank on it.
>
> Credit cards are unsecured debt. This can be resolved by a wave of
> bankruptcies. Or just refuse to pay: creditors would have to go to court
> to find something to seize.
>

There's that, plus there's also the question on if these "alarmist"
numbers are deliberately being cited without context.

For example, an increase of $24B to $1.17T is just +2%.

Since inflation was more than 2.5%, this means that consumer debt in
real dollars has actually declined.

Similarly, even if inflation didn't exist, one would also expect the use
of credit to be proportionate to GDP growth, which as of 3Q 2024 had
increased at a +3.1% annualized rate.

In simple form, putting inflation + GDP growth together suggests that
consumer debt should have nominally increased by (2.5% + 3.1%) = 5.6%,
but since it increased by just 2%, this is indicating that in real and
GDP normalized terms that consumer debt actually declined by -3.6%

-hh