Household debt has jumped 15% faster than income over the past dozen years.
>The average indebted household now carries a revolving balance of $15,355, according to a new study by NerdWallet. With credit cards carrying an average interest rate of 18%, that balance costs the average household $6,658 — 9% of income — in interest per year.
How is this a good idea?
http://time.com/money/4138675/americans-credit-card-debt-nerdwallet/
Good
>>70339831
You don't want free money?
How is that good, Palpatine? It will indirectly affect you over time.
Lately credit cards have been really competitive. The 18% is kind of misleading because many people pay it off every month without having to pay interest on outstanding debts. Because of the reward point services and vendors having to pay the credit card companies consumers are losing potential money if they don't use credit.
Guys how do I stop my revolving debt? This isn't free money?
>>70341886
true, I get like 3% back or whatever if I use my CC to pay for gas. Why would I pay cash? Gas is something I need and will pay for anyway. Might as well get the benefit even if it is small.
I pay for cash with everything, can someone explain to me why people use Credit cards.
>salary 7k a month
>withdraw 1k in spending, pay all bills online ~2k
>invest 2k, put 2k in savings account
Why don't more people do this? I like having the cash on hand and always feel good when I end the month with extra cash, I put that extra money away for a rainy day.
>using the sliding jew
>>70342441
If you're getting something for free, you're the product.
If you don't mind your buying habits being the product, carry on.
>>70342496
>Why don't more people do this?
Because they don't have a 7k income/mo.
>>70342496
Travel rewards. People who use points for cash back are devaluing points that could be used on travel.
>>70342496
because credit is faster and easier than cash, it actually has a money trail which is great for keeping track of things and people need credit lines when they don't have raw cash
moving debits in and out of your bank accounts doesn't build credit and its inconvenient as fuck
>>70342930
Well not necessarily that it's faster or inconvenient. You just don't get anything in return for using a debit card. The only one coming out on top when you use debit, is the merchant. When you use a credit card, you and and the issuing bank come out on top if you're paying in full every month. If it's a rewards card, you come out on top with the merchant being at the bottom.
>>70342232
Why do you need it in the first place? The credit card.
>>70339831
Gotta start lending money anons, seems to make the Jews rich enough.
>>70342496
Rewards programs, establishing credit by paying your bill when it's due and not racking up a shitload of interest, ease of use, insured transactions and fraud protection.
I use it to pay for everything and pay my bill before interest starts accruing. I have to spend the money anyway, so I end up spending that money and then I rack up a fuckton of points that I spend on shit on Amazon.
>>70339831
This reminds me
>A friend of mine works at Best Buy, makes very near minimum wage
>His girlfriend also makes approx. minimum wage
>$10k student loan debt
>$5k credit card debt
>Is buying a house because renting is "throwing away money"
>Implying interest on a mortgage, property taxes, maintenance on appliances like furnace/water heater/kitchen, etc. isn't throwing away money
I really don't understand what compels people to make these decisions
>>70344884
Parents who are bad at money pass on their horrible way of life to their children. Their children repeat their mistakes because they don't know anything different and just assume this is how everyone lives except for the mega-rich. Then they get mad about it and support Bernie Sanders.
>>70345376
It's funny you mention that, his parents are making the 5% down payment on the house...
>>70339831
Spent what you have.
But without extensive consumption, economic growth cannot be sustained in the long run. China economy, now that its exports are stabilized, cannot grow considerably because Chinese people save money instead of spending.
>>70345859
R A R E
A
R
E
>>70345564
it's cute that people think a 5% downpayment on a $600,000 mortgage is significant and indicative of a "low risk" borrower.
>>70344884
Renting is throwing away money but you shouldn't buy a house if you already are in deep debt
Most of that $15k probably spent on expensive clothes, gadgets, and other shit they didn't really need.
People are morons.
>>70339831
i made it to age 31 without ever owning a credit card
>>70346254
I don't get the hate on renting, though. I pay less a year in rent than what my parent's pay on property taxes alone.
I guess with a house you do build equity and get something in return for all you spend on them, though
>>70346254
Well, yes renting is throwing away money, but so is home ownership I believe to an even greater extent.
But you have to live somewhere - I believe in throwing away as little money as possible, personally. Which is why I have a roommate and pay $450 a month rent. I figure if I ever want a house I can make a massive down payment, have a much shorter mortgage with a better rate, and therefore I win in the end.
Under this scenario, I could buy a house in 5 years and probably have it paid off before my friend has his paid off. Get it?
>>70346390
yeah same, but I didn't have student debt and I came from a poor family that ironically knew how to manage money and not go into debt. just lived within our means, I still do the same but now I make more than both my parents combined.
I guess I don't get those dank reward programs but I never had any problems w/ credit checks and my mortgage process went quite smooth.
>>70346514
>I guess with a house you do build equity
You can typically expect to pay double the original purchase price due to the mortgage alone. Plus property taxes, home insurance, upkeep, etc, etc... you're not likely to profit anything in the end - but people feel like they profited when they sell their house because
>DURR I sold it for double what I bought it for!
>>70346514
Mostly, you get safety, and something your children can inherit later.
Rent offers other qualities, such as mobility and lower responsibility and risk.
>>70346514
>>70346522
There isn't anything wrong with renting, but you shouldn't be renting for a long time or your whole life. You should rent as short as possible
>>70346637
literally the same.
payed my own way through community college and payed off a slightly shitty house myself. fixed it up over the years and its pretty decent. nice and secluded, get to ride my atv down the street to the corner store shits fuckin comfy, i just need a female now to create children and such
Iv'e never used a credit card in my life. How do you fags get into debt? The only debt I have is my car im paying off.
>>70346839
>you get safety
What do you mean by safety?
Buying a house introduces huge risk. Roof could collapse, whole place could become infested with my mold, etc..
>>70347041
Did you read what I posted?
>You should rent as short as possible
No, the math works like this: you should have as short of a mortgage as possible.
>>70347125
I mean that the place is yours. There isn't a tenancy agreement as solid as this, ever. You can do with it what you want and it'll stay yours.
>>70339831
It's not an idea. It is a predictable involuntary function of banks. You stop it by standing up to banks. Our governments except Iceland do not know how to do that.
>>70347077
I'm 44 and I don't have a cc
>juden free and proud
>>70343976
Without credit you can't do anythingnhere. Its awful, the better you are with money the less people trust you. Need a car? Credit, need a phone. Credit. Need a house, loan, or anbusiness? Need credit.
>>70345564
Five fucking percent? I have 20% and can't find a house.
>>70348653
I don't believe that for one second.
>>70348789
Cash is king but credit is needed for stuff you can't buy with cash. The phones here, if you have poor credit you need a 400 dollar non refundable deposit to open an account. Go in debt or you pay!
>>70349048
No you don't. Just don't fucking sign up for one of those retarded contracts.
>>70349048
Why can't you just live below your means?
More retards in debt means more rewards for me. Thank you Millennials. :^)
>>70349381
Sure but what if your car breaks as your rent goes up? I'm not advocating the lifestyle, just playing by the rules.
>>70349291
Track phones are just fine. I'm giving examples. Imjust saying you need credit for shit. Dumbshit
>>70349726
Not calling you dumb. On a tablet ATM.
>>70349291
>this
I bought my g flex 2 off Amazon then put it on Straight talk. Only $50 a month and I get 6 gigs of data and unlimited everything else. Fuck those Cell company Jews.
>>70342232
> 30,000 credit card balance
is it a business card?
>>70342496
People think i'm weird because I pay for everything in cash unless i'm buying something online or a big purchase. I take out a set amount each week and if I run out then I don't get anymore out, if I have extra then I can get another case of beer and get extra drunk.
>tfw everyone in your generation is in debt and you just live at your parents working a part-time job to pay for hobbies
Move out goy, they said. Go to college and be independent, they said. Not being financially shackled to goldberg is the most independent feeling in the world tbqh fabs.
>>70349726
Do you need a car?
>>70350535
What about getting a house? You need a credit line for that.
>>70350740
Absolutely, yes. I have 3 and all paid off in cash because I couldn't get a loan to improve my credit score.
>>70350905
Why do you need 3 cars? Isn't that just costy to maintain?
>>70349048
You can buy literally everything with cash. Phone. Car. House. Even doctor bills can be paid with cash.
>>70350790
Not in Australia. I Know a dude that bought a house at 18 and never had a credit card until he got married later. Him and His sister's Joint income was enough to buy a house.
I fucked up and wasted money when I was younger and only started saving the last few years. Have $30,000 in the stock market. Will be up to $40,000 maybe $45,000 end of this year. This will be used as a deposit on a house.
>>70339831
Credit Cards are the most retarded shit ever, i don't know why people get them.
>>70351046
No 1 winter car 1 summer car 1 motorcycle. Winter car and summer car share insurance and its an extra 75 year to register another car.
>>70351109
Dude how are you going to save 100k in a reasonable amount ifntime when you're getting taxed for 1\3rd of your wages and have to pay rent and utilities and other bills?
>>70351972
Why don't you get an Autumn car and a Spring Car? Hell get one for each month.
>>70352310
Because SENPAI, a truck in our hard ass winters is awesome and I have reliable transportation. Besides they were not expensive. Best investment I've made.
>>70352533
I think you mean a Ute.
>>70351972
>Dude how are you going to save 100k in a reasonable amount of time when you're getting taxed for 1\3rd of your wages and have to pay rent and utilities and other bills?
By living below your means, which you're clearly not because you have 3 fucking cars you have to maintain. I'd be willing to bet you have a bunch of other shit you pay for that you don't need. You simply wanted that other shit more than you wanted that house. That's all.
The system in place is a scam designed to keep you in debt. The truth is: If you can't afford to save up to buy it in cash, you'll probably never afford paying off the loan that will end up costing you twice as much over time than just paying in cash.
What's your FICO score you degenerate slaves of the jew.
821 here. The jews are officially losing money on me.
>>70350243
No, they actually gave me a much lower limit on my business card since it was my first one.
Well I'm glad I'm only 6k in debt on my credit card but the sad thing most of that debt was incurred due to rising insurance rates, taxes and other debt incurred because of government action. And let's not mention the 13k I'm in debt for the sewer pipes the county installed in the street in front of my house. Thanks Obama!
>>70352533
>investment
that's liability dumb nigger
>>70354143
In what way?
>>70353119
That's nonsense, I purchased those because they were within my means and I've reached my goal for a house. As I've said I have over 20% for a down payment but can't get a loan. I have 0 debt and those vehicles are pennies to maintain because I know what I'm doing. Have you had a car you paid a grand for last over 5 years? On top of that my vehicles ensure I have transportation to mjy job.regardless of weather.
You clearly have no grasp on how loans work. Do you even have any credit?
>>70339831
Damn millennials, why don't they have any fiscal responsibility!?!
>>70339831
Average debt is irrelevant. What is the median?
>>70356884
Probably 0. I know no one who has any credit card debt. You have to be REALLY stupid/uneducated to not pay off the debt each month, but the people that don't rack up such high numbers it makes the average look bad.
>>70342639
They make their money on merchant fees and retards that carry a balance
>>70339831
This isn't news. It's been like this for decades where you have to borrow to maintain a somewhat similar standard of living as the pre-1970s. Though it got particularly bad after NAFTA.
>>70353119
>self-impoverishment
>>70348653
>>70349048
m8 what are you talking about? Credit is only bad when you let it fuck you over. The bank wants to make sure you can make payments before they give out a loan. Before I got a contract phone (Verizon) I used net10 and while they aren't the most up to date phones you can get smartphones with them. Honestly kinda miss that phone and it's plan, instead of the flat $50 I paid now I'm up $80 with 1 GB of data... But yeah. It's not as bad as you are making it to be.
I haven't got a credit card and refuse to own one. If I can't afford something they I don't buy it, I'm not borrowing to buy shit I don't need.
But apparently if you don't needlessly have a credit card you can't build up a good credit rating for when you do need to borrow for something important like a fucking mortgage. I think these shits that run the banks just want to force credit into people hoping they'll get careless and end up in debt.
Fuck credit cards. I paid mine off and cut them up. My credit? Good enough. I'm not buying a house any time soon so I don't need to worry about having great credit. If my car shits the bed, I will buy another with cash from my savings. It won't be a great car but it will get me to and from work. I refuse to live in debt and I think our country should do the same.
>>70342930
Having and paying your bills builds credit just fine.
>>70345859
THE RAREST OF RARES
>>70339831
But da rich need to pay more taxes durrrr not me i dont need to monitor my spending ooh new shiny thing!
Renting is always more expensive long term than owning. Buying is only good though if you plan on staying put for 5 or more years. To anyone arguing renting is less mentioning taxes insurance etc you pay all that and more in rent. They only call if rent though. Renting a house is worse than apartment though. I bought my house 5 years ago and my mortgage is 1085 a month. Renting my house from a landlord would be 1600 to 1900 hundred. My house is also worth about a third more than what I purchased. There are right times for both it's just important to think not a year down the road but 10.
>he doesn't know about the collapse of complex societies
the era of cheap energy from fossil fuels is coming to an end. 2008 marked the beginning. all we are in a downward spiral that will continue for decades, the welfare states and all that shit will not last much longer.
>>70353119
Anon you're being silly.
>>70353119
>If you can't afford to save up to buy it in cash, you'll probably never afford paying off the loan that will end up costing you twice as much over time than just paying in cash.
What? The whole advantage to responsibly taking a mortgage is (aside from writing the payments off your nigger dole collections DBA taxes) is that the bulk of the money you're not spending on a cash purchase can keep working while you pay off the loan.
Just don't fall into the "minimum payments" trap or blow your budget out on an xbox hueg home and a mortgage makes perfect sense.
People just seem to interpret it as free money for whatever house they want and adopt that "Guess I'm fucked lol" attitude that leads to paying only interest and wondering why the balance is so high.
>>70350620
Mommy and daddy can save you forever
>>70344884
Canadians have about 5 trillion in personal debt. Divided by about 30 million that's 166k of debt for every man woman and child. It will not end well because the juice is running on all that, anywhere from 2 to 30% interest. Inescapable debt. This doesn't even include government debt which is just as obscene.
>>70354890
I paid $6000 cash on my current car and $1800 on the car before that. And because I paid in cash, I was better able to negotiate a price I wanted and saved a lot of time to boot. And I always keep a chunk of reserve money available for emergency maintenance. I buy EVERYTHING in cash. I don't watch or pay for TV. I pay $50 a month for internet and $50 for my phone bill. About $75 a month for car insurance, $550 for rent, and whatever else I want in food. I'm saving up to buy a house in cash wherever I want one day. Anyone can save if they really try.
>>70339831
>>70342930
>Using credit card
>Not using a debit card
Debit cards are much better. You can put money on it making it easier to use than using regular cash.
>>70346687
As opposed to renting the whole time, which costs more, and when it's time to love you literally get $0 back.
a. fucking. leaf.
>>70339831
I'm 28,and have never had debt.I recently just got my first credit card that I haven't used at all,and is now frozen in a block of ice.The damn thing is meant for emergencies only.It bothers me that my fellow Americans want to live above their means.Buy things they can't neccessarily afford at all.It's astounding how dumb,and materialistic people have become.
