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© Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.As 'buy now, pay later' plans grow in U.S., so do delinquencies
By KEN SWEET NEW YORK©2024 GPlusMedia Inc.
29 Comments
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WA4TKG
No thanks. Pass
Yubaru
This is nothing new, been around a few generations already. In the "old" days, they called it "lay away" but then you didnt get the item until the item was paid in full. But even then there were some stores that let the item be taken home as well.
Chabbawanga
Thats what happens in a recession
bass4funk
Adding on to the debt and growing
William Bjornson
"Credit" companies, even such as these, are parasites on the young who seem to always see a brighter future just ahead. "I don't have enough money now, but, SURE, I'll be able to pay these things off but I MUST have them right now!" ALL 'credit' is poison but that is a difficult lesson for many to learn and the 'pushers' make enormous profits stealing the futures of naive people who then pay dearly for past immediate gratification. In America, two of the most fundamental practical facts of Life are completely neglected in children's educations: Sex and sexual relationships, and the vast army of financial parasites and their schemes waiting to take advantage of them. A large sector of the American economy depends on this ignorance. "BUY NOW (and pay and pay and pay later)". How much stress this adds to the ongoing national psychotic break now enveloping America can only be guessed...
painkiller
As 'buy now, pay later' plans grow in U.S., so do delinquencies
I've used both Uplift and Affirm; rates were not bad, and was very helpful as I did not have my credit card at the time I made the purchase.
wallace
Americans have the highest rates of credit card debt in the world.
Average American Credit Card Debt in 2022: $5,221.
Consumers have a total of $841 billion on their credit cards, and the average American credit card debt is $5,221.
Americans have an average credit utilization rate of 25.6%.
Credit card interest rates have been rising and recently reached an average of 16.4%.
Alaska is the state with the highest average credit card debt at $7,089.
Wisconsin is the state with the lowest average credit card debt at $4,587.
White Americans have the highest average credit card debt of any racial group at $6,940.
Higher income corresponds to larger credit card balances, but consumers in the middle-income brackets are the most likely to have credit card debt.painkiller
wallaceToday 12:59 pm JST
America has the highest GDP in the world.
Carrying about $17,000 myself right now. Big deal.
wallace
The average American has $90,460 in debt. The average Japanese has $32,000 in debt.
It is when you are 25%; interest. A loan would be cheaper.
Numan
You beat me to it!
wallace
at 25% interest that would be $6,750 per month.
wallace
RiskyMosaic
my bad-reword it then.
$17,000 credit card debt @25% interest is $4,250 per month.
ushosh123
Nothing new. You want to pay for your house in full?
wallace
RiskyMosaic
agreed. I borrowed more than that for my business. 10-year loan at 0% interest. Can't beat that.
Strangerland
Wow, that's no good. Maybe you should take some money management classes.
painkiller
wallaceSep. 18 10:14 pm JST
Not my card. and even if it did, no biggie.
And my Japan Amex last month was equal to about $12,000.
RiskyMosaicSep. 18 10:06 pm JST
I am assuming you don't even have a limit that would let you charge even close to that amount on a US credit card.
StrangerlandToday 12:03 am JST
Why? I guess you consider $17,000 an amount that you would not be able to pay back.
People who are able to charge that amount and more have a reason for doing so. When you have a high income, there are often advantages for borrowing.
Maybe you should take some money management classes.
Nuno Teixeira da Cunha
I live within my means, if i have lors of money i like to buy nice things but if not o just focus my attention in earning more, i have learn some lessons already, once i bought a bmw and it kept me spending in maintenance, now i own a mini and its just very easy to own. Same with clothes and watches, a seiko is better than a tag heuer sometimes, the kooples clothes are fine but so do are zara or h & m. Fast food versus gormet food align.
Strangerland
??? Not at all. I consider it irresponsible money management. If you are putting that much money on your credit card, you clearly never learned how to effectively manage money. The interest rates on credit cards is crazy. If you need to borrow $17k, there are so many other much more fiscally responsible ways to borrow this money.
Strangerland
I could easily put on and pay back $17k. But seeing as I'm good with my money, I NEVER would.
painkiller
trangerlandToday 02:24 am JST
Really? Or maybe it is effective money management. Let's see how---I will teach you.
First, you obviously are not aware that depending in credit scores, there are 0% for 21, or 24 months credit cards available in the US (being from Hong Kong and living in Canada, you are forgiven for not knowing this).
Second, it is effective money management to consolidate onto such 0% card, balances from other cards. Following so far?
Third, certain credit cards have minimum spend requirements to reach certain bonuses. I'm going to charge an additional $8,000 this month to reach that level. It gives me free air travel, hotel stays etc.
Fourth, it's kind of like for buying plane tickets and other items a credit card is needed. Why not do it using someone else's money? If you consider that borrowing money, well, I can see which income level you are probably at.
No, you couldn't. Because if you easily could, and were good with your money then you DEFINITELY would at 0%.
Strangerland
Ohh, you think that paying more money is worth it to get something not worth as much.
Or do you think credit cards are losing money based on the promotions they offer their users?
Sorry mate, good luck finding any good financial advisor who says its a good idea to carry $17k on your credit card.
wallace
Big balances can still hurt your credit scores
No matter what promotional deal you got on a new credit card, the rules remain the same as far as your credit scores. The amount of money you owe still accounts for 30% of your FICO score. If your credit utilization ratio — the percentage of your credit limit that you're using — is too high, your scores may suffer. In general, it's best to use less than 30% of your credit limit on any card.
painkillerSep. 18 01:37 pm JST
Average American Credit Card Debt in 2022: $5,221.
Carrying about $17,000 myself right now. Big deal.
painkillerToday 01:13 am JST
$17,000 credit card debt @25% interest is $4,250 per month.
Not my card. and even if it did, no biggie.
And my Japan Amex last month was equal to about $12,000.
Strangerland
Bingo. Although free should be in quotes.