Credit card debt the next bubble

[Texashiker]

You can't just go to school for whatever you want and expect a job to be waiting for you when you graduate.

A lot of young people do not realize that. They go to school, listen to all of the hype that certain jobs are in demand and the jobs pay this massive amount of money.

When the people finish college, then they find out they have to move hundreds of miles away to find a job.

Then there is a students loans.

I think there should be some kind of "truth in lending act" and a "truth in education" law. Where schools have to tell students that the degree they get might only pay $45,000 a year, but the degree is going to cost $100,000.

Schools should be made responsible for pushing certain degree plans (especially the expensive ones), and the graduates have almost no future in at career. Its like people spending $100,000 on a liberal arts degree where they make $35,000 a year as a teacher.

 

[rudder]

I think there should be some kind of "truth in lending act" and a "truth in education" law. Where schools have to tell students that the degree they get might only pay $45,000 a year, but the degree is going to cost $100,000.

How about if you are to ignorant to realize that getting a $100,000 student loan and becoming a professional making $45K/year is a dumb idea... that you should probably not be admitted to college.

 

[First]

That's roughly $2500 for every man, woman, and child. If you exclude citizens under 18 years of age it's $3200 per person, and I'm sure the $772B figure includes a lot of non-consumer-related credit card debt (business credit cards).

Not exactly a major concern and nowhere near a bubble, lol.

 

[werepossum]

Because it is the honorable thing to do.

Time to find a lower cost of living.

Exactly, and I salute those people who do that. I just don't think that even the most noble people are going to feel obligated to repay bills charged at 20-30% interest, not to mention liberally padded with fees and penalties.

Don't you DARE try to invoke morality after all the people and policies you support did to intentionally create this situation.

Grow up. The world is not divided into cape-wearing Republican villains in black hats and noble, spandex-clad Democrats in white hats. Both parties' policies have good and bad. Both parties do what they honestly feel is best for the country and its people.

Well, after they do what is best for themselves. And their support base. But again, that is both parties.

 

[werepossum]

If you want to live in a specific area, it is up to you, the individual, to acquire a degree for a job that is in demand in that area. You can't just go to school for whatever you want and expect a job to be waiting for you when you graduate.

I agree. But the fact that people SHOULD make good decisions is not enough to make the effects of their bad decisions go away.

A lot of young people do not realize that. They go to school, listen to all of the hype that certain jobs are in demand and the jobs pay this massive amount of money.

When the people finish college, then they find out they have to move hundreds of miles away to find a job.

Then there is a students loans.

I think there should be some kind of "truth in lending act" and a "truth in education" law. Where schools have to tell students that the degree they get might only pay $45,000 a year, but the degree is going to cost $100,000.

Schools should be made responsible for pushing certain degree plans (especially the expensive ones), and the graduates have almost no future in at career. Its like people spending $100,000 on a liberal arts degree where they make $35,000 a year as a teacher.

Although I tend to agree with Dank that it is each person's responsibility to make sure their education is practical, there is a lot of value in the concept that universities should have to abide by the same truth in advertising laws as do other businesses, especially considering the size of the investment. A lot more stringent rules are forced on businesses that cannot help or hurt us nearly as much.

 

[First]

People do realize that a credit card with 20% interest rates and balance of $100 every month will result in $0.67 cents of finance charges a month, not $20, right?

 

[Gonad the Barbarian]

Grow up. The world is not divided into cape-wearing Republican villains in black hats and noble, spandex-clad Democrats in white hats. Both parties' policies have good and bad. Both parties do what they honestly feel is best for the country and its people.

Well, after they do what is best for themselves. And their support base. But again, that is both parties.

Stereotypical mustache-twirling villains is exactly what the Republican party has been devolving into for decades. They've pretty much reached that point now and folks like you are still on board with them. Both parties are guilty of a lot of the same things, but there is a country mile between the two in the degree of damage they've done to this country and how much further down that path they are trying to take us. You have to be either really rich, really evangelical, really racist, or just really stupid to still support political "conservatives" in this country.

 

[Fern]

If CC debt is increasing (how the heck can two different sources report so differently?) I wouldn't be surprised if some, or a lot, is from small businesses struggling to hang on. Bank loans just aren't there, so CC borrowing is often the only resort.

Fern

 

[ElFenix]

People do realize that a credit card with 20% interest rates and balance of $100 every month will result in $0.67 cents of finance charges a month, not $20, right?

you're off by 133%.

 

[Drako]

you're off by 133%.

I think he's off by 150%, but hey, what with the new math and all

 

[werepossum]

I think he's off by 150%, but hey, what with the new math and all

I think he's off by 128%. Math is hard, let's bake cookies!

An annual rate of 20% equates to a monthly rate of 1.53%, assuming it's compounded monthly. $100 not paid would have a monthly charge of $1.53. His answer was $.67. The difference is $.86, which would be 128% of $.67.

Someone sharp in finance correct my math, please. I can't afford to forget anything else! LOL

 

[momeNt]

First month is $1.67 he forgot the 1, probably a typo.

 

[Drako]

I think he's off by 128%. Math is hard, let's bake cookies!

An annual rate of 20% equates to a monthly rate of 1.53%, assuming it's compounded monthly. $100 not paid would have a monthly charge of $1.53. His answer was $.67. The difference is $.86, which would be 128% of $.67.

Someone sharp in finance correct my math, please. I can't afford to forget anything else! LOL

Meh, I was assuming 1.67% monthly rate, so a monthly charge of $1.67, or off by $1.00.

 

[momeNt]

Yea werepossum uses a 13 month calendar

 

[Pulsar]

Stereotypical mustache-twirling villains is exactly what the Republican party has been devolving into for decades. They've pretty much reached that point now and folks like you are still on board with them. Both parties are guilty of a lot of the same things, but there is a country mile between the two in the degree of damage they've done to this country and how much further down that path they are trying to take us. You have to be either really rich, really evangelical, really racist, or just really stupid to still support political "conservatives" in this country.

So we can't talk about financial irresponsibility because you have a deep seated hatred for the Republicans?

Partisian hatred for the LOSS.

If you don't have the money, don't spend it. Black, White, Democrat or Republican, the formula doesn't change. Having nice stuff doesn't make life better. If you think it does you should re-evaluate your definition of happiness.

 

[alkemyst]

That is what I am worried about.

I also wonder how many people have exhausted their unemployment benefits and are now living on credit.

Have you done any research? I don't think you understand that unemployment doesn't really measure the unemployed. I probably know 12+ people now that don't count in the unemployment numbers, but are without jobs and no longer get benefits. Fortunately for them they can all ride out all the way from only another year to all the way to just starting a 40+ year retirement (however, they are in their 50's+ and no one calls them back on resumes).

In the end it's sad when those that want to work can't.

Add that to those on welfare and the like getting credit then just abusing it.

We are in a screwed up state of affairs.

 

[Gonad the Barbarian]

So we can't talk about financial irresponsibility because you have a deep seated hatred for the Republicans?

Partisian hatred for the LOSS.

If you don't have the money, don't spend it. Black, White, Democrat or Republican, the formula doesn't change. Having nice stuff doesn't make life better. If you think it does you should re-evaluate your definition of happiness.

If you, or anybody, can cite a modern Republican position that doesn't cater to one of those four groups I listed at the expense of the rest of the country by all means post it. I'll go ahead and spot you gun ownership. That's one. Got any more? I won't hold my breath. I don't hate Republicans because they are Republicans, I deride Republicans because they actively hate everyone else. They overtly freaking campaign on it. They've devolved into little more than one big hate group based on attacking poor people, sick people, brown people, gay people, teachers- the list goes on and on. And the public's fiscal irresponsibility is largely a symptom of those attacks. This country is not in the shitter because a poor folks are buying big screen TV's.

 

[Texashiker]

If you, or anybody, can cite a modern Republican position

The Republican VS Democrat mindset is what has gotten this country into the trouble that its in.

Forget Republicans

Forget Democrats

If you want "real" change, and not the obama type of change, you are going to "have" to vote for a different party.

I blame both parties equally for the mess this nation is in. And because of that blame, I vote third party every chance I get.

 

[werepossum]

Yea werepossum uses a 13 month calendar

What, you don't all use the Wiccan lunar calender? Have the Mayans taught us nothing? LOL

I was assuming the monthly interest rate that correlates with a cumulative effective annual rate of 20%.

I have no clue if that is how it is calculated.

 

[Gonad the Barbarian]

The Republican VS Democrat mindset is what has gotten this country into the trouble that its in.

Forget Republicans

Forget Democrats

If you want "real" change, and not the obama type of change, you are going to "have" to vote for a different party.

No, polices that favor large corporations at the expense of small business, ultra-wealthy at the expense of the middle class, and free market dogma over common sense practicality is what has gotten this country into the trouble that it's in. And there is one party in particular that is far more guilty of pushing such policies and keeps moving further and further still in that direction. That's just the damn reality of it beyond any "both parties suck" faux neutrality.

 

[ElFenix]

I think he's off by 150%, but hey, what with the new math and all

that's what i get for doing repeating decimals in my head



simple interest (credit cards use compound interest based on average daily value and 12 compounding periods so on an annual basis this doesn't work, but does work for just calculating one month's worth) formula is:

(average daily balance)*(i)/12

so, $100*.2/12

 

[Texashiker]

No, polices that favor large corporations at the expense of small business, ultra-wealthy at the expense of the middle class, <snip> That's just the damn reality of it beyond any "both parties suck" faux neutrality.

I guess that is why Bill Clinton did a flip-flop on NAFTA after he was elected?

Bush was pro NAFTA during the election.

Clinton was anti-NAFTA during the election.

But as soon as Clinton was sworn into office he changed his mind and signed the NAFTA treaty. How does that work that Democrats are supposed to favor the working class, but sign free trade agreements?

Trade agreements are passed by 2/3 majority of the Senate. No party of congress has a 2/3 majority. It takes both parties of the senate to approve the free trade treaties proposed by the president.

The excuse that one party favors big business over the other party is a lie.

 

[Franz316]

I bet gas prices are a big portion of the new debt. Instead of paying for gas out of pocket, a lot people just charge it and worry about it later, since there is rarely an alternative to driving. The CC companies love high gas prices.

 

[Gonad the Barbarian]

I guess that is why Bill Clinton did a flip-flop on NAFTA after he was elected?

Bush was pro NAFTA during the election.

Clinton was anti-NAFTA during the election.

But as soon as Clinton was sworn into office he changed his mind and signed the NAFTA treaty. How does that work that Democrats are supposed to favor the working class, but sign free trade agreements?

The excuse that one party favors big business over the other party is a lie.

What is not a lie is the degree each party is willing to throw everyone else under the bus to do it. It's not much of a difference, but it is plainly there. At least Dems are willing to use lube when screwing us over instead of making us buy our own or pay for the anal stitches.

 

[Texashiker]

What is not a lie is the degree each party is willing to throw everyone else under the bus to do it. It's not much of a difference, but it is plainly there. At least Dems are willing to use lube when screwing us over instead of making us buy our own or pay for the anal stitches.

My post you quoted was edited to include this

Trade agreements are passed by 2/3 majority of the Senate. No party of congress has a 2/3 majority. It takes both parties of the senate to approve the free trade treaties proposed by the president.

Both parties favor big business equally.

If the democrats "really" favored the working class, they could have VERY easily held up the vote on free trade.