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American credit card debt just broke the trillion dollar level. Taking on debt, “ bad” debt, credit cards , auto loans and similar, is a like attending a raucous party , taking in too much alcohol , etc.
The aftermath , paying off high interest loans, is like the worst hangover, ever. It can take decades to recover from it.
Often, too much alcohol can kill you, quickly or long term, * alas , debt can kill you, quickly, ** or long term , *financially. Foreclosure, and often bankruptcy are far too common issues.
* John Bonham , the drummer for Led Zeppelin, died after having 48 vodka drinks in 24 hours.
** A good friend ended up in the emergency room and nearly died after defaulting on a loan from a , uh, * sub- prime” lender.
I pay off credit debt monthly, but I don’t limit myself to one card because part of your credit score is based on the percentage of credit utilization. Your utilization rate will be lower (and credit score higher) if you have multiple credit card accounts.
We each have only one credit card and we don’t carry any credit card debt. I pay mine off every week and my wife once a month.
I learned the hard way last weekend the downside to having only one card. We bought new iPhones at an Apple store. For some reason, they did mini charges separately (phone, Apple Care and accessories) and that triggered suspicion from my credit card company. The cc company didn’t even send a text verifying if this was legitimate. Went out to dinner the next night and my cc was denied. Never, ever has this happened in the 40 years I’ve had the same card. I got the problem resolved but this past Monday, I signed up for another cc.
we have had the same Credit Card for over 30 years…..we do not chase point or rewards…we pay off every month……I guess we are living within our means but we are happy and have no debt and buy what we need and want without question also eat out often and tip well….older Boomers will servive
From WSJ.com
Things Are Quiet in Consumer Credit. Too Quiet. – WSJ
“On an inflation-adjusted basis, total household debt remains more than a trillion dollars below the record high hit at the end of 2008, according to figures calculated by WalletHub. With population growth factored in, it is even relatively lower. Credit-card debt for the average household, for example, is almost 13% off its peak level.”
While I’m certainly not a fan of consumer debt – the picture isn’t quite as dire as the absolute cc debt level seems.
The article is behind a pay wall. What does it mean by “too quiet”? Surely less debt should be a cause for celebration.