SD51555
5 year old buck +
This is the quantity of outstanding credit card debt. This one is not the overdue balances, just a figure on how quickly the high interest debt is piling up.
Stock Market is the bottom in?
- Thread starter Peplin Creek
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hesseu
5 year old buck +
Agree. I use a CC for nearly everything, and it is up 40% monthly average vs 3 yrs ago. Did find this...
SD51555
5 year old buck +
That one is true, but can come across more sensational than it is. Delinquencies were running around 4.5% for the longest time. They've risen to around 6.5% last I heard, and that is a few months old already. 6.5% might be entirely survivable. I don't know at what rate that sinks a bank though. Is it 8.5%? 11%? I don't know if anyone has modeled that.
Banking is such a filthy and sleezy business that there is no telling where this ends up. There is already a bailout in place for the widespread bank collapse that hasn't happened yet. The fed is going to buy every severely underwater long term government bond these banks hold at face value. Some of them are down 25% or more because rates have risen, and that equates to holes in balance sheets of hundreds of billions of dollars for some individual banks, and many trillions in total. The banks also do not have to properly record the deflated value of their bonds if they're classified as 'held to maturity' assets.
Bank and insurance company balance sheets are a complete fabrication at this point, and the only people it's really going to hurt are the users of the American dollar (inflation) because it's going to get shaved by a massive amount the moment this plan goes live and those trillions in bond losses are papered over by an avalanche of fake money printing.
Respectfully, this is a really dated philosophy. For me the most financially responsible mode of operation is to use a CC. I see every transaction the second it occurs via a text on my phone. Budgeting tools get those transactions in real time and bucket them according to category. At the end of the year, I see exactly what I spent to exist. What better way to plan for retirement than knowing exactly (literally exactly) they’re spending as a household pre-retirement? Oh and I get 2% cash back every month deposited straight to an investment account.
westonwhitetail
5 year old buck +
Turkish, we use CC for the cash back. What programs/apps are you using for the budgeting aspect? Is it through your CC company? Are the investments set up through the CC company automatically or are you manually moving that cash back money to another investment account?
I'd love to hear more about how you do this. I have been looking for a better way for budgeting that is doing more automatically, rather than manually. And if setting up some automatic investments is a possibility, I like the sounds of that.
Dated philosophy, maybe. But I know how much stupid shit my wife buys on Amazon, just because. I'm guilty of it too. If we paid cash for everything I would be saving a lot more money each month.
Do what works for you, but this sounds more like a behavior issue than a CC issue. To me, if I’m seeing that charge in real time on my phone AND I see my “useless crap” category go up in a given month, it’s a lot more personal than some anonymous cash expenditure that I never see.
jsasker007
5 year old buck +
Using a credit card only makes sense if you pay it in full before they get to charge you interest. Otherwise you are spending more than you need to. Don't see any mention of if anyone is paying the CC bill in full or paying interest on minimum payments. I use a CC and pay the full amount to avoid ANY interest.
There are lots of account aggregators out there now. Some cost money, some are free. Some do a better job at budgeting, some better at importing transactions from small local banks. I’ve heard good things about Empower (formerly Personal Capital). Mint was good at budgeting but has been phased out. Some use Quicken Simplifi. I’ve heard good things about Monarch and may give it a try. These tools are incredibly useful IMO.
I’ll PM you about the credit card.
Oh. If someone carries a balance on a CC then they should disregard everything I said. lol.
hillrunner
5 year old buck +
You make a good point. I like credit cards for the reasons listed above and I have them set to automatically pay off every month so I never pay interest. However, there are definitely purchases I make online that I wouldn't if I had to go through the hassle of sending in a check or even worse had to show up in person to pay cash.
SD51555
5 year old buck +
I try to use cash more than I have in the past. The CBDC is coming and I'm going to be the first one debanked because of all the memes. I also think it's important to use cash with local businesses as much as possible. One, Visa doesn't to be skimming 2% in fees from someone I appreciate if it's something that can still be handled in cash. Two, I don't need the NSA and WEF knowing every single place I go. They're gonna have to buy that information from Suburu, Apple, T-mobile, Fargo Police, Fargo traffic monitoring, Ring, or listen in on others' phones for my voice to show up somewhere.
jsasker007
5 year old buck +
Cash is my first choice for places/purchases that will still take cash money. They won't let me pay cash for a vehicle anymore. They will take a check though.
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Angus 1895
5 year old buck +
I predict VFF to bud out and up!
Buckly
5 year old buck +
CC’s are much safer than buying something with a debit card. Especially online. They offer protections like doubling the warrantiy, stolen card info protection and scam protection. Also the cash back is nice. If nothing else if you ever try to rent a car it’s a real hassle without a major CC. When I travel I put everything on a CC. I feel it’s better to just pay at the end of the month than having my bank account drained by some skimmer scam.
You are a Dave Ramsey guy and I like that. I'm Dave"ish"
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