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Credit card debt at record high as Fed raises rates again in U.S.

18 Comments
By CORA LEWIS

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18 Comments
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If one thing living in Japan has taught me is to not spend money I don't have. Of course this can be very beneficial with point benefits and cash back benefits, but I always get a head ache whenever I get the credit card bill so I decided to just drop it all together. Thankfully many stores here offer alternatives like Debit, Suica, PayPay, etc.

5 ( +5 / -0 )

Really? My credit card balance right now is $3.16

-5 ( +0 / -5 )

The highest amounts of credit card debt in the G7.

-3 ( +3 / -6 )

American should not have faith in bank,when banks do have the money on hand ,bank that have deposit of 15 to 100 million, supposed to have 3 percent in hard currency's and banks over 100 million supposed to 15 percent in hard currency's in the bank, regulator regulate your money,better than they regulate banks,if you have an bank account ask your bank do they have sufficient cash reserve,such as a 10 thousand dollars,if you need in an emergency,that the answer if your bank say no,I am not a banker or lawyer,I do not give financial or legal advice,it for you to decide

-2 ( +1 / -3 )

If one thing living in Japan has taught me is to not spend money I don't have. Of course this can be very beneficial with point benefits and cash back benefits, but I always get a head ache whenever I get the credit card bill so I decided to just drop it all together. Thankfully many stores here offer alternatives like Debit, Suica, PayPay, etc

Excellent point. One problem in the US for years is that you have a lot of banks in poor communities advertising low interest rate loans that are easily approved with little requirements or penalties and grace periods, of course you will have a lot of responsible people jump at the opportunity to apply, they get approved for credit, loans and then later these people can’t make the payments for whatever reason, they default on their loans, they lose their credit, their homes and we see this time after time, they’re not taught or shown how to manage money responsibly and this is one huge reason why the US is in this position.

2 ( +4 / -2 )

In terms of total monthly debt obligations, African Americans have a monthly debt obligation of $1,521, while Hispanics have $2,028 and Whites have $1,653. » This level of indebtedness is not surprising when you compare the level of monthly debt to the level of monthly income.

"A weak job market in which Black-‐White employment and wage gaps have widened accounts for some of the disparity. Nearly half (48 percent) of all Black graduates owe more on their federal undergraduate loans four years after graduating with bachelor's degrees, compared to just 17 percent of White graduates."

https://sites.ed.gov/whblackeducation/files/2016/11/Black-College-Graduates-and-the-Student-Debt-Gap.pdf

-3 ( +0 / -3 )

Savages like VISA and MC should be regulated and allowed to only earn certain % over the Prime Federal Rates.

I do understand that in an open market banks and Credit co. can charge customers as they wish and I agree, BUT in certain cases and conditions like what we are facing now it is the government job to protect it's vulnerable citizen from Loan Sharks and Credit Scammers as well as banks and credit card companies.

2 ( +2 / -0 )

Rule NO. 1 Never pay the Minimum amount or what they call in Japan Revolve. Always pay the full balance .

Now if you can't then you are setting yourself up for a major financial disaster that COULD effect every aspect of your life, and I am NOT joking !!? I have seen friend go down that path and lose everything.

4 ( +4 / -0 )

One problem in the US for years is that you have a lot of banks in poor communities advertising low interest rate loans

Thanks Trump!

https://fortune.com/2020/07/10/trump-administration-quietly-roles-back-protections-against-predatory-payday-loans/

American precarity, living paycheck to paycheck, is part of predatory neo-liberal policies embraced by the American political and economic establishment.

-1 ( +1 / -2 )

If used correctly, credit card debt is a benefit to users.

1 ( +3 / -2 )

I won't comment on people's finances but so many paying 16% or so every month. That's savage.

2 ( +2 / -0 )

We use credit cards for the convenience. In my long life, I have only ever paid $2 in monthly credit card interest, and that because I forgot to pay the bill.

4 ( +4 / -0 )

When I got my first credit card there was no 'revolve' option, I took it for granted that each month you paid off the balance, what you had spent, no more, no less.

When they introduced 'revolve' (after I'd earned a credit rating? dunno) I thought it was quite handy until I read the small print and realised that it would cost. No Thank You.

So I continue to pay off the balance each month - it comes out of the bank account automatically, no way I can 'forget'. Never paid any credit card interest.

You can also choose at time of purchase to split the repayment over two or three months. I think there's a fee/interest involved for three or more months, a bit like a limited 'revolve'. I've used the two-month option a few times for very large items.

1 ( +2 / -1 )

Lower rates and get less debt then!

0 ( +0 / -0 )

Up to my mid 20's I had serious credit card debt and when I got myself out, I swore I would never be there again and living in Japan it has been a promise easy to keep. Not owning a car in Japan and this being home for many years I figure right there I have saved myself over a hundred thousand dollars in insurance, gas and upkeep. In addition, when I first arrived in Japan many stores never accepted credit cards it was cash only country for the most part at that time and now if I cannot pay my purchases at the end of the month when using a credit card, I cannot afford it. Meaning, I have zero debt on my credit cards and no outstanding bills, savings in the bank and I feel blessed to be able to say that. For others not so fortunate my heart goes out to them.

2 ( +2 / -0 )

Something many people should be aware of and are not when you take out a cash advance off your credit card there is a DAILY INTEREST FEE starting from the day you take the money out. VERY IMPORTANT NOTE, when you pay your bill each month if you don't have the full amount the bank puts the largest portion of your payment to your purchase and a bare minimum to the cash advance. I had a family member and a friend who both took out cash advances and were not aware of this fact and did not believe my words but were quick to learn my words were the truth and they quickly got their bills paid off.

1 ( +1 / -0 )

One big difference between Japan and Korea. Korea loves buying their luxury materialistic lifestyle on credit card debt.

1 ( +1 / -0 )

@bass4funk Incorrect, most banks are not in "poor communities" they operate outside those communities they don't see any benefit to do business in those communities. Banks and other traditional lenders, consider low- and moderate-income people and neighborhoods as risky investments. They are very reluctant to extend loans for construction, home buyers, and small businesses. They want a surer bet in terms of value, stability, and repayment. What you are talking about is PREDATORY LENDING"*advertising low interest rate loans that are easily approved with little requirements or penalties and grace period"s***! **

If one thing living in Japan has taught me is to not spend money I don't have. Of course this can be very beneficial with point benefits and cash back benefits, but I always get a head ache whenever I get the credit card bill so I decided to just drop it all together. Thankfully many stores here offer alternatives like Debit, Suica, PayPay, etc

Excellent point. One problem in the US for years is that you have a lot of banks in poor communities advertising low interest rate loans that are easily approved with little requirements or penalties and grace periods, of course you will have a lot of responsible people jump at the opportunity to apply, they get approved for credit, loans and then later these people can’t make the payments for whatever reason, they default on their loans, they lose their credit, their homes and we see this time after time, they’re not taught or shown how to manage money responsibly and this is one huge reason why the US is in this position

0 ( +0 / -0 )

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