Posted on Sunday, 7th December 2008 by CreditCardGuru
By the looks of the headlines lately, you would think every single American is about to default on their mortgage and has a mountain of credit card debt. True, debt has gotten out of control. The last few years Americans borrowed money to buy and sell houses back to each other at unsustainable double digit gains. The dot com bubble wasn’t any different. The “bubble lifestyle” financed by debt has been going on for quite some time now.
Ironically, credit card debt turns out to be the least of our problems. Why? Because although some abuse it, the vast majority of Americans continue to use their credit cards responsibly. In fact, the large majority don’t even carry a balance from month to month. Yes, it is true credit cards have surged in popularity the last couple of decades. But that is largely due to the popularity of perks such as 5% cash back credit cards and the simplicity of paying with a card instead of carrying cash.
Take a look at the latest numbers from Gallup Poll. What percent of Americans carry a balance on their credit cards? Despite the dire state of the economy, that number is surprisingly at the lowest point we’ve seen over the past 7 years.
Tags: credit card debt, credit cards, credit crisis, debt
Posted in News | Comments (5)
December 7th, 2008 at 9:25 pm
Surprising for sure…..
December 8th, 2008 at 7:14 pm
How is this possible? And if it is true then why are credit card companies raising interest rates on us claiming they need to because of defaults?
Sounds like a big scam to me!
December 9th, 2008 at 9:29 am
I wonder if I could have the govt come in and give me a “bailout” for my bills…
December 10th, 2008 at 1:03 pm
Good news for sure
January 7th, 2009 at 5:53 pm
The banks including the Fed (all fractional reserve banks) have and continue to perpetrate a fraud upon an unsuspecting, naive, and uninformed public. Credit card companies don’t lend money. http://www.fortruth.org/TimM.mp3 (audio it’s Canadian but applies to the US also).
Also regardless of any alleged loan mortgage, auto, renovation, government etc. There is one fundamental thing that is not considered.
Interest is NEVER produced, therefore it does not exist. Example if there is one million dollars in circulation and I lend it to you at 10% over a year, it is impossible for you to ever pay the contract back because the interest does not exist. If you cannot pay me back $1,100,000 (principle and interest) then you are in default to the tune of $100,000 I can now take your assets. Most of your tax dollars goes to an interest debt that doesn’t exist.
This is why people go bankrupt, why some social programs terminate because we are all playing the finance game with interest that doesn’t exist it’s like musical chairs some win and some lose. The loss is paid with loss of assets and continued labour or labor if you wish. You have to work more often and longer. You have to have two people from the same household working to exist. Now the IRS has TWO people in one household to tax.
Labour/labor is the only thing of value on this blue/green rock that we live upon. That’s why it is termed Human RESOURCES it is our labour that backs everything, the whole system exists because of our labour. Gold is fine but it takes our labour to dig it out of the ground.
As Henry Ford once said “if the people today were to understand the monetary system of checks, credits, debits. There would be riots in the streets by tomorrow”.
I think there is a general awakening taking place throughout the world.
May you live in interesting times!
Happy New year!
E