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(ABC)   Americans cut back on their credit card use in September, as they catch up on their credit card bills from August ... of 2009   (abcnews.go.com) divider line 22
    More: Followup, credit cards, student debt  
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696 clicks; posted to Business » on 09 Nov 2013 at 11:54 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



22 Comments   (+0 »)
   
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2013-11-09 09:40:52 AM  
A bum asked a friend of mine for a dollar saying "I don't have any money for food today" and my friend replied "You're lucky. I'm still paying VISA for food I ate in 2006."
 
2013-11-09 10:57:42 AM  
FTA:  The increase was driven entirely by an increase in borrowing for auto and student loans

I wonder if this has to do with school starting back up?  My understanding is that student loans make up more of the debt we have than credit cards.   So, not sure I'm too excited about this news.
 
2013-11-09 12:01:44 PM  

raerae1980: I wonder if this has to do with school starting back up? My understanding is that student loans make up more of the debt we have than credit cards. So, not sure I'm too excited about this news.


Americans have $1 trillion in student loan debt as compared to $783 billion in car debt and $679 billion in credit card debt. http://www.bizjournals.com/stlouis/blog/2013/04/fed-student-loan-debt - surpasses-auto.html

At least the car debt and credit card debt is dischargeable in bankruptcy. Student loan debt will follow you until you pay it off or die. Student loan servicers are the only ones (besides the IRS) that can garish your paychecks and bank accounts without a court order. They can (and have) garish your Social Security checks and tax refunds. Student loan debt is the worst debt you can have (besides tax debt).
 
2013-11-09 12:10:21 PM  
2009!?

I'm still paying off the ones from the late 90's.
That whole 'y2k not ending the world' thing really bit me in the ass.

/I still think the credit card company is partly responsible
//who loans a teenager enough for a gold blackhawk helicopter with a hot tub??
 
2013-11-09 12:17:15 PM  

MurphyMurphy: 2009!?

I'm still paying off the ones from the late 90's.
That whole 'y2k not ending the world' thing really bit me in the ass.

/I still think the credit card company is partly responsible
//who loans a teenager enough for a gold blackhawk helicopter with a hot tub??


Hey, at least you got the free T shirt with college-friendly slogans about beer and pot, right?

/Saw a cc company doing that on my campus back in 2001, was flabbergasted.
//There was 6 students filling out forms on clipboards when I walked by.
 
2013-11-09 12:25:57 PM  
I learned from my parents' mistakes (bankruptcy, watching them cut up their cards) so when I got a card, I made DAMN sure to pay it off every month. It probably helped that my first card had a $250 limit, so I couldn't go "OOH shiny!" and buy something stupid.

I've also been lucky enough to not go for an extended period of time without a job, so I didn't have to start relying on my cards to get groceries. The few months of unemployment did wipe out my savings.
 
2013-11-09 12:33:54 PM  
I love credit cards and the at minimum 1% discount off everything effect ... just need to not be in the I'll pay for it later mindset.
 
2013-11-09 12:43:51 PM  
Hey, at least you got the free T shirt with college-friendly slogans about beer and pot, right?
/Saw a cc company doing that on my campus back in 2001, was flabbergasted.

in the late 70's and early 80's the credit card companies were handing out welcoming baskets with toiletries and the sales rep politely pitching visa and mastercard. in the mid 80's i remember a rep pitching something like a free domino's pizza every month for a year if you get accepted and use the card just once. if use used the card enough the sales rep promised pizzas raining down on you while you were still in school. the line waiting to sign up was obscene.
 
2013-11-09 12:53:54 PM  

raerae1980: FTA:  The increase was driven entirely by an increase in borrowing for auto and student loans

I wonder if this has to do with school starting back up?  My understanding is that student loans make up more of the debt we have than credit cards.   So, not sure I'm too excited about this news.


At least no one is stupid enough to put tuition on a credit card.  I think that's a banker's holy grail.
 
2013-11-09 01:16:40 PM  

AngryDragon: At least no one is stupid enough to put tuition on a credit card. I think that's a banker's holy grail.


No, student loans are a banker's holy grail.

Government backed, basically no regulation on who you can loan to and how much. You can pay them or the government will. It's a win-win, guaranteed profit.

Think credit card debt is an issue? Housing prices? At least there is a way out credit card debt. At least you can usually sell your way out of the worst of it when a mortgage suddenly becomes unbearable.  (Hell, you can walk away from both if you don't mind washing out your credit for 7 years.)

Want to see a real damper on the economy? Wait until student loans represent a sizable percentage of consumer debt in comparison to mortgages. It's coming, and it's not going to be pretty.
 
2013-11-09 01:36:52 PM  
I have no mortgage, no car payment, no credit cards. I also have nothing worth stealing. I'm not sure how to feel about that.
 
2013-11-09 01:37:02 PM  

starlost: Hey, at least you got the free T shirt with college-friendly slogans about beer and pot, right?
/Saw a cc company doing that on my campus back in 2001, was flabbergasted.

in the late 70's and early 80's the credit card companies were handing out welcoming baskets with toiletries and the sales rep politely pitching visa and mastercard. in the mid 80's i remember a rep pitching something like a free domino's pizza every month for a year if you get accepted and use the card just once. if use used the card enough the sales rep promised pizzas raining down on you while you were still in school. the line waiting to sign up was obscene.


I filled out a whole lot of apps for things like that with bad info for free stuff during my time in college.  Most people that came to campus for things like that didn't come back after they realized how common that was.
 
2013-11-09 01:39:23 PM  

AngryDragon: raerae1980: FTA:  The increase was driven entirely by an increase in borrowing for auto and student loans

I wonder if this has to do with school starting back up?  My understanding is that student loans make up more of the debt we have than credit cards.   So, not sure I'm too excited about this news.

At least no one is stupid enough to put tuition on a credit card.  I think that's a banker's holy grail.


I don't know if this is still the case, but my university allowed me to pay for tuition using a credit card, with no additional fees.  Although the one time I did it, it was because I was still waiting for a disbursement check to cover the tuition (it arrived about a week after the tuition came due), so I paid off the credit card bill in full using the disbursement when the time came.

I was lucky, though.  My parents taught me how to make a budget at an early age, and my grandmother convinced my parents to start investing in a college fund shortly after I was born (my parents weren't that well-off, but 18 years of small contributions and reinvested dividends ultimately paid for my tuition and most of the associated bills).  And I graduated just before CSU tuitions really started to spiral out of control.
 
2013-11-09 01:40:02 PM  
"Student loan servicers are the only ones (besides the IRS) that can garish your paychecks and bank accounts without a court order. They can (and have) garish your Social Security checks and tax refunds. Student loan debt is the worst debt you can have (besides tax debt)."

You can actually still file for Bankruptcy and include a student loan IF (big IF), you have an aggressive good banko attorney AND you can prove hardship in repaying the loan. Not easy, but it can be done. Tax debt is nothing. If you have nothing, you're Gold. If you have good assets, you're screwed.
 
2013-11-09 01:56:03 PM  

starlost: Hey, at least you got the free T shirt with college-friendly slogans about beer and pot, right?
/Saw a cc company doing that on my campus back in 2001, was flabbergasted.

in the late 70's and early 80's the credit card companies were handing out welcoming baskets with toiletries and the sales rep politely pitching visa and mastercard. in the mid 80's i remember a rep pitching something like a free domino's pizza every month for a year if you get accepted and use the card just once. if use used the card enough the sales rep promised pizzas raining down on you while you were still in school. the line waiting to sign up was obscene.


This extended well past the 90's. I had a $27,000 credit line as an unemployed college student - thankfully I was never stupid enough to max it out.

/ Just paid off my last debt
 
2013-11-09 01:58:56 PM  

kittyhas1000legs: I learned from my parents' mistakes (bankruptcy, watching them cut up their cards) so when I got a card, I made DAMN sure to pay it off every month. It probably helped that my first card had a $250 limit, so I couldn't go "OOH shiny!" and buy something stupid.

I've also been lucky enough to not go for an extended period of time without a job, so I didn't have to start relying on my cards to get groceries. The few months of unemployment did wipe out my savings.


Took me over a year to learn that painful lesson back in the '90's.

/ completely my fault as well
// Chemical Bank (later gobbled up by Chase)  only gave me the rope to hang myself with...
 
2013-11-09 02:50:20 PM  
Two things:
1) Income sensitive repayment.
and
2) Time-barred debt (credit card type).

Oh. And a Tracfone.
 
2013-11-09 03:08:41 PM  

Sin_City_Superhero: I have no mortgage, no car payment, no credit cards. I also have nothing worth stealing. I'm not sure how to feel about that.


You have TotalFark, so at least there's that :)
 
2013-11-09 07:04:25 PM  

Mister Buttons: Sin_City_Superhero: I have no mortgage, no car payment, no credit cards. I also have nothing worth stealing. I'm not sure how to feel about that.

You have TotalFark, so at least there's that :)


Again, he has nothing of value.
 
2013-11-09 10:13:43 PM  
I was just able to pay off the two I have last month. Mom came into come serious backpay and broke her favorite son off. I was REALLY in the deep end on bills and I was able to get caught up and gave a steak dinner and not use credit for once.

/Thanks Mom
//Thanks Dad, technically.
 
2013-11-10 09:22:24 AM  

Sin_City_Superhero: I have no mortgage, no car payment, no credit cards. I also have nothing worth stealing. I'm not sure how to feel about that.


Right there with ya. I do have a mortgage, though... although I've never heard of someone stealing a house.

/my folding metal chairs and card table are sexy AND comfortable
 
2013-11-10 09:39:25 AM  

dchurch0: I've never heard of someone stealing a house.


It happens...

supportyourlocalgunfighter.com
 
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