Saw this headline today and it caught my attention.
Some highlights from the article.
The bank—the U.S.'s ninth largest—found this was happening across all income levels. The proportion of Capital One customers making only minimum payments was also higher than prepandemic levels.
Higher than pandemic levels seems crazy because all people had was time and they used it to shop.
Capital One is a major credit-card issuer with a large savings-account business. Late Tuesday, it reported $1.1 billion in fourth-quarter net income, a 55% increase from a year earlier. It narrowly missed analysts’ revenue expectations.
Net income up 55%. That’s a lot of growth.
I still remember my grandpa tell us kids to be careful with plastic. He was not a fan of credit cards. Then I remember my dad telling me not to get a credit card unless it was for emergencies. My dad uses them just didn’t want me as a youngin to form bad habits.
Ive been lucky for sure to never have credit card debt. I made a deal with myself that once I got a credit card I would login and pay them off every other Friday. That eventually changed to paying them off every Friday. It’s been a great way to always keep myself in check and still get the rewards.
Is that necessary? No. Actually this would annoy most people. But it works for me and has worked for years. I know lots of folks who never carry a balance and still just pay them off monthly. But it works for me.
here are some screenshots from this article from lending tree.
https://www.lendingtree.com/credit-cards/study/credit-card-debt-statistics/
Let’s hope the trend improves going forward but I don’t like the odds of that happening.
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I use credit cards often, but it’s more like charge cards like the old green AMEX card. I pay them off every statement.
I remember a long time ago I was lucky enough to get a credit card that had an interest rate of 9.99% or something like that. I held onto it until they finally changed it. It was my go-to card though. My wife and I had credit card debt when we first got together, but we were able to work hard and eliminate it after 3 years and we haven't had any since. It's scary how bad the debt rolls up on people and buries them!
yeah I’ve watched it ruin lives. Especially at 29%
It's getting bad for people. If they're carrying balances and only paying the minimum, the balances likely never go down. It's just digging a deeper and deeper hole.
I usually pay off the entire statement balance, unless they make me an interest free deal for a year. I had a Home repair project finance interest free.
it’s nice when it interest free. !PIZZA
Credit cards are to be used to earn rewards and be paid in full monthly! Otherwise you can start to sink in the quicksand.
I foresee increasing credit card debt nationwide, someone has a major car problem or roof problem and put it one the card. It's tough to get out of those high APR's. Good to hear you pay them off weekly!
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