12-11-2012, 12:23 PM
Join Date: May 2004
Location: Isla de Muerta | DC/VA
My Ride: 328Ci | Range Rover
| Such a jabroni
Uncited data? I went back and added URLs (If you were interested in the source, you could have just copy/pasted a single sentence into google with quotes around it.. and TADA).
So we're going to assume that the average is jacked up because the uber-rich has hundreds of thousands in credit card debt? Getttt real.
Let's again look into this (rather than just hating on the other view.. which is what you've been doing)
Forbes Article : http://www.forbes.com/sites/moneybui...-debt-is-down/
So you're going to sit there and tell me that credit card debt is stored amongst... the rich? Commmmme on.
Originally Posted by forbes
One may be inclined to assume Americans are taking control and whipping their finances into shape. The reality of the situation is much grimmer. In 2010, credit card companies wrote off seriously delinquent debts, declaring a huge chunk of money uncollectable. America's credit card debt dropped. The charge-off rate, which is the percentage of dollars that have been classified uncollectible, jumped to 10.7%-a 300% increase from 2006.
After losing a gargantuan number of payments, credit card companies began to exercise shrewder discernment in issuing financial products. With credit cards more difficult to obtain, average debt continued to fall.
So, no. A decrease in credit card debt does not indicate heightened financial literacy, a recovering job market or smarter spending habits. It means the situation was beyond repair and required an artificial reduction.
It's worth noting that while the average credit card debt has dropped since 2010, the number of indebted households jumped 3.5%. Credit card companies only wrote off seriously delinquent accounts, which meant forgiving a hefty sum of debt among a relatively small number of households. As a nation, a greater percentage of us are in debt today than in 2010.
The future is sadly predictable. As the economy (hopefully) improves, lenders will feel more comfortable taking risks, approving more precarious products. Debt will swell once again. And when it all becomes too overwhelming, the bubble will burst and devastation will ensue. Like the turning of the seasons, it's all very cyclical... and inevitable.
More doomsday visions
Credit card debt ranks third in American household indebtedness. First place, as you might assume, goes to housing debt. We've all seen the effects of that. Second place is awarded to a volatile contestant we all know will soon wreak havoc on the American financial system: student loans.
Credit card debt is a HUGE problem and was an even larger problem for the poor pre-bubble (fortunately they have trouble getting into debt when the banks won't give them cards to begin with).
You're not an idiot and are more than capable of realizing these obvious truths.. you simply are choosing not to because you realize you put your foot in your mouth earlier commenting that my notion that america is fat and ridden with CC debt was not factual.
I've now provided countless articles (from legit sources) backing up my positions and you have done nothing but label them "generalizations". When you provide data to the contrary, then you'll have some ground to stand on. Until then, don't just bash me with personal jabs as it does nothing to bolster your position... then again, I suppose it will be VERRRRY difficult to find data stating that the US isn't fat nor in credit card debt. So I'll just prepare mentally for more of your spiteful comments
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Last edited by 2000_328CI; 12-11-2012 at 12:27 PM.