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Credit Card Debt Soars, No One Notices
Okay, I was following the New Hampshire primary too, but this is big news. Credit card debt soared at a 11.3 percent annual rate in November following an 8.5 percent rate of increase in October. Last year credit card debt rose at a 6.1 percent rate and in 2005 at just a 3.1 percent rate.
People borrow against their credit cards when they can't borrow against their homes. It looks like a lot of people can't borrow against their homes.
--Dean Baker
COMMENTS (9)
Of course people haven't noticed - the economy is poised on the edge of blasting off, faster than you can say 'Bucky.'
Which means that credit debt is simply investing in a brighter future.
Besides, the only way for various financial institutions to ensure a continued bonus stream is by increasing the debt of others - and who better to turn to than Americans, people who are proving that borrowing your way to wealth remains something which only a truly dynamic society can do - unlike such savers as the Japanese or Germans, who are still stuck in the past with their old fashioned manufacturing economies.
As the rest of the world has yet to discover the miracle of the minimum monthly payment, they remain mired in the hopeless situation of actually living within their means.
Suckers. As everyone knows, happiness comes with a brand name, available at finer retail establishments. Happiness is not achieved with six week vacations or universal health care - things which can't be bought using MasterCard, Visa, or American Express.
Posted by: not_scottbot | January 9, 2008 6:29 AM
On a related topic, I recall congress having hearings this year about the abuses of the credit card companies.
Did anything ever come of that?
Posted by: Erik L | January 9, 2008 7:55 AM
Many future foreclosure victims are taking cash advances from their credit cards to make their mortgage payments, as well. So it's both people buying the stuff they used to buy with the HELOC or refinanced mortgage and people trying to keep up with the house payment.
Posted by: PeonInChief | January 9, 2008 12:15 PM
Actually, I am hearing that this good news from a few media outlets. It’s sold as proof that the recession is short lived and things are about to rebound.
Posted by: Code Name D | January 9, 2008 3:17 PM
Retail sales weren't exactly stellar in Nov. So Peon's hypothesis of folks taking cash advances to pay their mortgage or other bills may be accurate.
I personally love the evil of Universal Default the Credit Card Companies invented. Talk about a perfect captive pricing strategy. Once the suckers FICO is hosed he/she wont be able to get credit elsewhere and will be stuck using your card. Might as well jack the rates up to 30% APY. Muh hahaha its pure evil. You'd think Carl Rove himself came up with it.
Posted by: R. Timm | January 9, 2008 3:51 PM
30% How do I get a deal like that?
Posted by: Code Name D | January 10, 2008 8:47 AM
Reply to Mr. R. Timm
He most certainly didn't read the 'fine' print in his credit card contract, where it states, for any number of reason, 'why' they can increae you interest rate to 28.99%.....NO!!!! That's NOT a misprint....
Oprah, had a show on that....
Some of these prople are going to get hosed, pretty badly to say the least
Posted by: His LordShip | January 10, 2008 8:41 PM
Now there is infinite wisdom with not_scottbot comments. We are getting ready to blast off going further in debt. What is most scary in this world is the ignorant who assume they know best.
Posted by: Stephen | April 6, 2008 6:42 AM
I'm confusing...
how do i get like the lot range of debt....
i really confusing...
thankx
=========
bob
Don't be a victim. Stop credit card debt now. We can help.
http://www.stop-credit-card-debt.com
Posted by: bob | June 2, 2008 7:42 AM