https://www.cnbc.com/2024/11/13/credit-card-debt-hits-record-1point17-trillion-new-york-fed-finds.htmlJust in time for the holidaysHeading into the holidays, many Americans were already saddled with record-breaking credit card debt. And yet, consumer spending is set to reach a fresh high this season. The National Retail Federation reported last week that spending between Nov. 1 and Dec. 31 is “clearly on track” to reach a record, between $979.5 billion and $989 billion.“Job and wage gains, modest inflation and a healthy balance sheet have led to solid holiday spending,” the NRF’s chief economist, Jack Kleinhenz, said in a statement.But other reports show that many shoppers are increasingly leaning on credit cards to manage their holiday purchases.To that point, 36% of consumers have taken on debt this season, a recent report by LendingTree found. And those who dipped into the red racked up an average of $1,181, up from $1,028 in 2023, according to the survey of more than 2,000 adults.“No one should be surprised that so many Americans took on debt this holiday season. Prices are still really high and that means that lots of Americans simply didn’t have any choice,” said Matt Schulz, LendingTree’s chief credit analyst.“Inflation is still a big deal in this country, and it’s having a huge impact on people’s finances, including their holiday spending,” he said.Heading into the peak holiday shopping season, credit card balances were already 8.1% higher than a year ago, according to the Federal Reserve Bank of New York’s report on household debt.Further, 28% of credit card users had not paid off the gifts they bought last year, according to another holiday spending report by NerdWallet, which polled more than 1,700 adults in September.
>>1371040wrong link here is the correct one: https://www.cnbc.com/2024/12/27/credit-card-debt-set-to-hit-record-levels-as-consumer-holiday-spending-rises.htmlThe problem with credit cardsOf those with debt, 21% expect it’ll take five months or longer to pay it off, LendingTree also found. At that rate, sky-high interest charges will exact a heavy toll, according to Schulz.“That means less money to put towards other big goals for the new year, such as growing an emergency fund or saving for college,” he said. “In more extreme cases, it may mean you’re less able to pay essential bills or keep food on the table. In either case, it’s a big deal.”
>>1371040https://www.youtube.com/watch?v=Zql5VQl2k0o
>>1371040Kind of pointless unless they can say how much of that 1.17T is unmanageable vs how much is just people using CC benefits or security features that debit/cash don't have. Debt alone doesn't paint the whole picture.
>>1371100>security features that debit/cash don't haveCash. Sure. You move that, it's moved. Debit? Prove to me the bank cannot - at their chosing - dip into another bank's accounts and reverse the flow of money. If they choose to is another matter.>Debt alone doesn't paint the whole picture.But it's most of it. If you could afford it you wouldn't need credit. You'd buy it. Most of debt acquisition is folk living outside of their means. As for 'unmanagable' - you overstepped once, you'll do it again. Unmanagable is just a matter of time and a few unfavourable variables to align.
>>1371496You should spend a little more time understanding how credit and debt work
