Another Article on American's Debt

[Independent]

What percent of Americans have credit cards?
What percent of Americans carry balances on their credit cards? (don't pay off the entire amount)

I guessed 85% had at least one cc, and 2/3 of them didn't pay off their balances, so maybe 55% of all Americans have balances. I was too high with both guesses.

Quote:

Credit cards are found in most Americans’ wallets. Multiple studies say about 7 in 10 Americans have at least one credit card. Boston Federal Reserve data released in August 2017, for example, found 75.7 percent of consumers had at least one credit card,

Quote:

Card issuers divide the world into two groups: “transactors” who use their cards for purchases and pay off the balances each month; and “revolvers” who carry balances on their cards, paying interest charges month to month. To pure transactors, the balances on their cards aren’t really debts at all, since any purchases will be paid off before interest charges are applied. The percentage of U.S. households revolving credit card debt from month to month has been level at about 37 percent in 2019, from 38 percent in 2018, after steadily falling from 41 percent since 2010,

https://www.creditcards.com/credit-c...statistics.php
https://www.creditcards.com/credit-c...stics-1276.php

There was a time when the only way to handle an emergency expense was the cash in the bureau drawer or under the floorboard. Even banks weren't safe. Rich people had a "line of credit", ordinary workers didn't. Then credit cards gave most workers a loc.

But, depression era people hated debt, so it took a while for attitudes to change. Now, you don't need $1,000 in the bank earning 0.15% interest to cover your emergency. If the transmission falls out of the car, you reach for plastic. (am I behind the times? do kids reach for their electronic device instead?)

[googily]

Quote:

Originally Posted by Independent If the transmission falls out of the car, you reach for plastic. (am I behind the times? do kids reach for their electronic device instead?)

I'm not a kid, but I use my phone/Google Pay whenever I can. It's the greatest.

[Music Lover]

Quote:

Originally Posted by Independent If the transmission falls out of the car, you reach for plastic.

I put everything on my credit card that I'm allowed to...even my phone payment. But I do it for the points.

[Dtail]

Quote:

Originally Posted by Music Lover I put everything on my credit card that I'm allowed to...even my phone payment. But I do it for the points.

Big +1
Maximize 5 different CC for points.

[Spock]

Its obvious debt fuels our current economy.
The thing with debt is it accelerates or "pulls in" future consumption by allowing it to happen now vs. later.
While the economy is juiced by that accelerated consumption now, it leaves an air pocket in the future when that debt must be paid back (or defaults) or the debt has grown to the point that it no longer fuels as much "growth" as it used to.
Every system has its limits. Eventually it starts to shake and rattle. Accelerate further and the wheels come off.

[Rianne]

If those who used CC, used them wisely, it might be a simpler society. Sweden is doing it.
"In Sweden, however, especially in bigger cities, going cashless is becoming the norm. Purchases usually happen as digital transactions — by card, online or with Sweden's most popular mobile payment app, Swish."
"It's good for both the guests and for us," says Christopher Loob, general manager of Urban Deli, a restaurant and ecological food company in Stockholm that stopped accepting cash a year ago. "It's saved us a lot of time in that we don't have to count cash anymore. There's hardly been any reaction. Almost everybody has the alternative payment method — a credit card."


https://www.npr.org/2019/02/11/69133...-much-too-fast

[Independent]

Quote:

Originally Posted by Rianne If those who used CC, used them wisely, it might be a simpler society. Sweden is doing it. "In Sweden, however, especially in bigger cities, going cashless is becoming the norm. Purchases usually happen as digital transactions — by card, online or with Sweden's most popular mobile payment app, Swish." "It's good for both the guests and for us," says Christopher Loob, general manager of Urban Deli, a restaurant and ecological food company in Stockholm that stopped accepting cash a year ago. "It's saved us a lot of time in that we don't have to count cash anymore. There's hardly been any reaction. Almost everybody has the alternative payment method — a credit card." https://www.npr.org/2019/02/11/69133...-much-too-fast

China is also working on a cashless economy.

Quote:

China’s cities are ‘closest to cashless consumer economies’ as mobile payments surged to a record amount in the 10 months to October last year. Mobile payment transactions in China reached a record 81 trillion yuan (US$12.8 trillion) from January to October last year, driven by the vast number of consumers across the country who have looked beyond credit cards to more convenient, cashless systems. ... China’s latest tally dwarfed the estimated US$49.3 billion in total mobile payment transactions in the United States last year,

Notice that is trillions compared to billions.

I'm not sure about the common use of phones. Do people use them as debit cards (immediately withdrawing money from bank accounts), or like credit cards (borrowing until the next payment date) ?

I'm bothered by cashless because it means one more system that can fail due to human error, random hackers, or a cyber attack from an unfriendly gov't.

[LRDave]

Quote:

Originally Posted by Independent I'm bothered by cashless because it means one more system that can fail due to human error, random hackers, or a cyber attack from an unfriendly gov't.

Plus, how am I going to buy eggs from my neighbor down the road?

[joeea]

Quote:

Originally Posted by Spock Its obvious debt fuels our current economy. The thing with debt is it accelerates or "pulls in" future consumption by allowing it to happen now vs. later. While the economy is juiced by that accelerated consumption now, it leaves an air pocket in the future when that debt must be paid back (or defaults) or the debt has grown to the point that it no longer fuels as much "growth" as it used to. Every system has its limits. Eventually it starts to shake and rattle. Accelerate further and the wheels come off.

"Eventually" is a long time.

I can't get into partisan politics here. But I think it's fair to say that many politicians care only about "now" and don't care much about "eventually", because they won't be around at that time.

Voters seem to agree. There's no political incentive to do anything about America's debt. And so nothing will be done. So it goes.

[travelover]

Quote:

Originally Posted by LRDave Plus, how am I going to buy eggs from my neighbor down the road?

Trade him for one of your goats.

[Teacher Terry]

I like to use cash for small purchases. It’s a pain to have to keep track of small purchases with a CC.

[Spock]

Quote:

Originally Posted by joeea "Eventually" is a long time. I can't get into partisan politics here. But I think it's fair to say that many politicians care only about "now" and don't care much about "eventually", because they won't be around at that time. Voters seem to agree. There's no political incentive to do anything about America's debt. And so nothing will be done. So it goes.

I agree. Personally I think the fuse on "eventually" has been burning for awhile... and in general things seem to accelerate more than they seem to slow down.

I tend to ignore the US politicians on this particular issue as the only time side X complains about the debt is when side Y holds more chairs (with X and Y being interchangeable).
However, I believe that external forces/countries will have a bigger say in the US debt than US politicians. When (for example) BRICS et al are able to bypass the dollar as a reserve/trading currency things are going to change to favor somebody else for awhile.

[joeea]

Quote:

Originally Posted by Spock the only time side X complains about the debt is when side Y holds more chairs (with X and Y being interchangeable).

I don't agree, but that's a topic for a different forum.

Quote:

However, I believe that external forces/countries will have a bigger say in the US debt than US politicians. When (for example) BRICS et al are able to bypass the dollar as a reserve/trading currency things are going to change to favor somebody else for awhile.

We'll see. I'm not holding my breath waiting for that to happen any time in the foreseeable future.

[Music Lover]

Quote:

Originally Posted by Independent I'm bothered by cashless because it means one more system that can fail due to human error, random hackers, or a cyber attack from an unfriendly gov't.

Or you can be shut out by an unfriendly tech or credit card company for simply having the wrong stance on a hot button topic. That's already happening.

[googily]

Quote:

Originally Posted by Independent China is also working on a cashless economy. Notice that is trillions compared to billions. I'm not sure about the common use of phones. Do people use them as debit cards (immediately withdrawing money from bank accounts), or like credit cards (borrowing until the next payment date) ? I'm bothered by cashless because it means one more system that can fail due to human error, random hackers, or a cyber attack from an unfriendly gov't.

Google Pay works in concert with your credit card companies to set up your cards to be used. It transmits virtual numbers, and requires you to log into your phone (I use my fingerprint), so I consider it safer than the physical card, though chip cards have helped that a bit.

In my big city, I can go weeks without handling cash, and I'm also now able to use my phone even more. The lunch place in my office building now takes Google Pay, the vending machines take it, CVS has finally given in and is taking it, etc. And even some phone apps let you choose Google Pay as your payment type, keeping your account information walled off.

My phone is soldered to my hand at all times, and anywhere I can use it rather than digging in my purse for a credit card works for me.

[jazz4cash]

Quote:

Originally Posted by Teacher Terry I like to use cash for small purchases. It’s a pain to have to keep track of small purchases with a CC.

How so? It’s much easier for me track small purchases with a credit card than with cash. I can decline a receipt and still have multiple records for the transaction. In the last few months there were several times I left my wallet but was able to complete a purchase using iPhone wallet.

[gwraigty]

Quote:

Originally Posted by jazz4cash How so? It’s much easier for me track small purchases with a credit card than with cash. I can decline a receipt and still have multiple records for the transaction. In the last few months there were several times I left my wallet but was able to complete a purchase using iPhone wallet.

I agree. I use a cash back credit card for everything. Even small purchases add up to generate more cash back, IMO. I get a receipt for most everything, put the paper ones aside, then check them against the statement.

[Teacher Terry]

If I use my CC I need to look at the statement to make sure all the charges are mine versus using cash.

[mpeirce]

Quote:

Originally Posted by Teacher Terry If I use my CC I need to look at the statement to make sure all the charges are mine versus using cash.

Using cash is fine by me.

The way I watch out for "all charges being mine" is by scanning mint.com every now and again to see if something looks wrong. But the main way is that I get notified of every single charge that goes on my credit card. My watch taps me on the wrist when a charge goes by and my phone screen shows it as a notification.

It's all real time - even the monthly charges are logged this way. Sometimes at odd and mildly inconvenient times.

[Dtail]

Record my charges daily except on vacation, so try to use CC over using cash, plus lesser trips to the ATM.