Thinkprogress:
A new report issued recently by the Center for American Progress warned that, “as borrowing in the mortgage market slows, credit card borrowing is accelerating — a dangerous trend because borrowers still face weak income growth. That means the credit card market could eventually run into the same problems that now afflict the sub-prime mortgage market. ” Tonight, NBC News reported that credit card debt is nearing a record $1 trillion. The piece noted there is a “credit card binge across the nation as people use their plastic to stay financially afloat.”
5 comments:
Ever since college, I had heard this song about escalating credit card debt.
Who holds this debt?
I think we bundled the debts, accounts receivables, and sold them to...India...where they have alot of call centers located, and let Bruce...nee Deepak, make phone calls in the middle of the Mubai nee Bombay night to a deadbeat in Boston.
What's a businessman in India to do? He's bought our worthless accounts receivable, some may be deadbeats, some may be honest people whose identity was stolen, some may be debts that are judgement-proof because the debtor files for bankruptcy or has medical expenses. India has no army, so it's not like they're going to come over here!
CA
First Americans should educate themselves on economy. Credit cards as based on one assets. When you get a loan from a bank you have something the bank can take if you don't pay the loan back. Like a car or a house. Credit cards were developed with the client not having to give anything down. Now since the 1950's it's built the US economy up with what's called Fait Money. Now this is not paper money it's just numbers. Once to education yourself on the the US Economy System works you'll understand why we're in a recession.
But if you don't have the time. The short vision is this.
You have 100 in the bank, you right out 200 worth of checks what's your balance if he didn't put more in the bank?
The bottomline is that a credit card holds no real value in dollars. The credit card is not honest money where you exchange for good and services. As Jackie said, since the year 1951 with the introduction of the credit card, the credit card today has become a necessity for lifestyle and livelyhood than ever. That is why that is less spending with honest money and more spending with a credit card. People need to do their homework and look at the national debt clock and the amount that is being spent over in Iraq.
Mama pays her credit card bills in full every month and pays a little extra on the mortgage toward the principal every month, too.
Mama learned about home economics in high school, where home economics actually meant creating a budget, etc. for a home owner.
I think they stopped teaching kids that stuff in schools, and they are not learning it from their parents anymore.
We keep getting a couple of generations further away from those who grew up in the Great Depression. Our elders knew the value of the dollar.
Good point, Kittybowtie! And could you have mama teach our elected officials especially the Gerbil?
You are right. It is a shame that home economics in school. I had that class.
p.s. Glad Mama pay her credit cards in full. I don't have any credit cards at all. Paid them in full and have no intentions to get another plastic card.
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