Credit card debt setting records in the US
I had a very interesting conversation this morning at the gym with one of my long time friends. We were talking about debt and he brought up that he still has $6000+ of credit card debt. I was shocked... so I asked some questions. I was shocked because I know this guy makes a great living working as a GM for a business here in town and he seems to have control of his finances.
Question 1. What is your interest rate??? He did not know!
Question 2. How much cash do you have in your checking account right now? He has well over 20k with no big expenses in the future.
Question 3. Why have you not paid that off? He did not know.
So then I hoped on google and started reading some article about credit card debt. 2 Crazy things I found.
The average Credit Card APR is 24%+ and the US just passed 1 Trillion in credit card debt. 1 TRILLION WITH A T
Let’s take a look at these headlines.
People are embarrassed.
We are setting records.
I wrote about student loans a bit ago and how that will have an impact on the economy. I think this might have more as these continue to grow.
Inflation is supposed to be down but things are still expensive and people are still buying.
I assume your friend paid off the debt shortly after your conversation? Or is he still financing the banks/credit card companies?
!LUV
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! help(no space) to get help on Hive. InfoI think he will pay it off this week. Ha. Glad we had the chat.
!PIZZA
I can imagine. Maybe you should suggest him to pay half of the interest he saves to you 😉
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Inflation is down, but prices stay high, they just are not increasing as much as before. The lack of financial knowledge by the vast majority of the public is shocking. Even smart people seem oblivious of the basics. We seem to teach a lot.of stuff in school but personal finance. !PIZZA
Yeah they avoid teaching that is schools. !PIZZA
What a moron..... never ever carry credit card debt unless there is not other option. People can be pretty dumb when it comes to money!
Hard to act right sometimes around money. !PIZZA
Lol over 24%. It used to be a crime to have rates that high.
Still seems criminal. !PIZZA
This post makes me want to invest more money in credit card companies. Staggering statistics.
Or start a credit card company. Ha
!PIZZA
😀
Cashless policy becoming the order of the day
I believe that people lack financial education, many times they are getting into debt without realizing it, simply because they don't know how credit, loans, interest and others work.