marylander1940 Posted January 4 Share Posted January 4 OP note: we (Americans) went from having the highest personal savings in record in 2021 to having some of the lowest savings. I guess the 2020 shutdown, staying home, not driving, etc. had a lot to do with us cutting on expenses. What is the average credit card debt? WWW.USATODAY.COM Credit card debt in the U.S. is, on average, $7,951 per person. Here’s how it breaks down by age and location. States with the highest credit card debt WWW.FOXBUSINESS.COM Californians and Texans hold the most credit card debt, according to WalletHub. U.S. consumers nationwide hold more than $1 trillion in credit card debt. Here are the top ten states with the highest total credit card debt during the second quarter: California: $152,707,028,131 Texas: $111,299,095,554 Florida: $87,100,047,481 New York: $79,608,721,593 Illinois: $46,785,492,452 Pennsylvania: $45,638,259,152 Georgia: $41,132,589,305 Ohio: $38,478,365,000 New Jersey: $37,935,342,142 Link to comment Share on other sites More sharing options...
Beancounter Posted January 4 Share Posted January 4 I have no debt of any sort but I use one particular credit card as much as I can. The reward benefits really add up over time. Of course, I pay off any credit card balance monthly and never carry a balance forward. + jeezopete, musclestuduws, EZEtoGRU and 4 others 6 1 Link to comment Share on other sites More sharing options...
+ Charlie Posted January 4 Share Posted January 4 1 hour ago, marylander1940 said: OP note: we (Americans) went from having the highest personal savings in record in 2021 to having some of the lowest savings. I guess the 2020 shutdown, staying home, not driving, etc. had a lot to do with us cutting on expenses. What is the average credit card debt? WWW.USATODAY.COM States with the highest credit card debt WWW.FOXBUSINESS.COM Californians and Texans hold the most credit card debt, according to WalletHub. U.S. consumers nationwide hold more than $1 trillion in credit card debt. Here are the top ten states with the highest total credit card debt during the second quarter: California: $152,707,028,131 Texas: $111,299,095,554 Florida: $87,100,047,481 New York: $79,608,721,593 Illinois: $46,785,492,452 Pennsylvania: $45,638,259,152 Georgia: $41,132,589,305 Ohio: $38,478,365,000 New Jersey: $37,935,342,142 The rankings of the states by amount of debt almost exactly match the rankings by population, so there is nothing really noteworthy there. Kevin Slater, marylander1940, + Vegas_Millennial and 4 others 2 5 Link to comment Share on other sites More sharing options...
+ Charlie Posted January 4 Share Posted January 4 I have no credit card debt. When I met my future spouse at the age of 25, he was disturbed that I had credit card debt for vacation trips I had taken; from then on, I never charged anything on a card that I couldn't pay off in full when the monthly bill arrived. The only long term debt I have had in the last 50 years was for houses or cars, and I haven't even had much of that. Beancounter, + Vegas_Millennial, musclestuduws and 2 others 1 3 1 Link to comment Share on other sites More sharing options...
+ FrankR Posted January 4 Share Posted January 4 No debt. I use my cards for the benefits, but pay them off monthly. + jeezopete, Jim_n_NYC, + Pensant and 3 others 2 3 1 Link to comment Share on other sites More sharing options...
Monarchy79 Posted January 4 Share Posted January 4 I use rewards based credit cards a lot. and I always use them for large purchases… here’s my system: 1.) use card with points, make big purchases…. Pay the full balance off, and then use the points to get gift cards or travel rewards. 2.) use other rewards cards to department stores and go crazy during their “buy more save more”, themed promotions. especially the ones where they offer you gift cards for the amount you purchase. I specifically do this at Saks and Bloomingdale’s and will just pay the card off, before the next due date and then accept the gift cards. marylander1940 and + FrankR 1 1 Link to comment Share on other sites More sharing options...
+ Vegas_Millennial Posted January 4 Share Posted January 4 (edited) I owe more than I'd like. I used to be debt free except for my mortgage until 2020. Then a bunch of household repairs all came due at once: Water pipe leak/mold remediation, HVAC system replacement, water heater replacement, damaged garage door, exterior house repaint, broken toilets, replaced all exhaust vents and smoke detectors; all within 2020-2023. And, I embarked on my most expensive holiday yet: two gay river cruises in Europe in 2023. That leaves me with $100k on zero interest credit cards and low-interest HELOC that I used to finance these improvements/repairs/travel. I finally decided to stop contributing to my 401k/Roth IRA and instead use the money to more quickly pay down this debt. Edited January 4 by Vegas_Millennial + jessmapex, + Charlie and marylander1940 3 Link to comment Share on other sites More sharing options...
BSR Posted January 5 Share Posted January 5 Average credit card debt hit a 10-year high of $6,088 per consumer as of Nov 10 this year. I'm sure that figure has gone up since because of holiday shopping. Link to comment Share on other sites More sharing options...
EastCoastBtm Posted January 5 Share Posted January 5 Zero on credit cards for the last 8 years. + Vegas_Millennial and + FrankR 1 1 Link to comment Share on other sites More sharing options...
pubic_assistance Posted January 5 Share Posted January 5 I only used credit during the pandemic. I've been an AMEX guy for decades. Charges are paid in full every month. marylander1940 1 Link to comment Share on other sites More sharing options...
+ Coolwave35 Posted January 5 Share Posted January 5 Proud to have zero debt other than mortgages. + Vegas_Millennial 1 Link to comment Share on other sites More sharing options...
Simon Suraci Posted January 5 Share Posted January 5 No credit card debt. My Jeep is paid off. Mortgages are another story… + Vegas_Millennial 1 Link to comment Share on other sites More sharing options...
+ purplekow Posted January 5 Share Posted January 5 This is generally an affluent group so it is not a surprise to have many people with no debt. I am also an Amex user with monthly full balance payments taken automatically. I use Amex to pay all my purchases and bills. I see no reason for automatic payments of utilities and the like when I can have them paid automatically through Amex and get the points. When I redid my kitchen, I got all of my appliance with points and racked up a bunch of new points with the purchase. + Pensant and Simon Suraci 2 Link to comment Share on other sites More sharing options...
viewing ownly Posted January 5 Share Posted January 5 To Diner's Club (the first credit card), not a thing! + Coolwave35 and + Pensant 2 Link to comment Share on other sites More sharing options...
Shoedog112 Posted January 5 Share Posted January 5 I’ve always left a small balance on the one credit card that I use for everything besides my debit card. I’m not sure where I heard this info, but was under the impression that having zero balances on credit cards could affect your credit score? It never made sense to me, but for some reason went along with it. I’m not a financial expert by any means but if I’m believing misinformation, please let me know! 🙏. Otherwise, I have no credit card debt other than less than $1,000 intentional balance. Simon Suraci 1 Link to comment Share on other sites More sharing options...
marylander1940 Posted January 5 Author Share Posted January 5 13 hours ago, Vegas_Millennial said: I owe more than I'd like. I used to be debt free except for my mortgage until 2020. Then a bunch of household repairs all came due at once: Water pipe leak/mold remediation, HVAC system replacement, water heater replacement, damaged garage door, exterior house repaint, broken toilets, replaced all exhaust vents and smoke detectors; all within 2020-2023. And, I embarked on my most expensive holiday yet: two gay river cruises in Europe in 2023. That leaves me with $100k on zero interest credit cards and low-interest HELOC that I used to finance these improvements/repairs/travel. I finally decided to stop contributing to my 401k/Roth IRA and instead use the money to more quickly pay down this debt. well, you fly first class and have an expensive hobby! Think about all the extra expenses you had to do in your home as investments in keeping things up to code/updated/working. Tighten your belt for a couple of years treating yourself a bit less and you'll be back in you feet soon. Thank you for sharing! + Pensant, Simon Suraci and + Vegas_Millennial 2 1 Link to comment Share on other sites More sharing options...
Jim_n_NYC Posted January 5 Share Posted January 5 5 hours ago, Shoedog112 said: I’ve always left a small balance on the one credit card that I use for everything besides my debit card. I’m not sure where I heard this info, but was under the impression that having zero balances on credit cards could affect your credit score? It never made sense to me, but for some reason went along with it. I’m not a financial expert by any means but if I’m believing misinformation, please let me know! 🙏. Otherwise, I have no credit card debt other than less than $1,000 intentional balance. No, paying off your balance in full will not affect your score. I've been travel hacking (which partly involves applying for lots of credit cards) for years and I've never heard that. Simon Suraci and Shoedog112 2 Link to comment Share on other sites More sharing options...
Simon Suraci Posted January 6 Share Posted January 6 9 hours ago, Jim_n_NYC said: No, paying off your balance in full will not affect your score. I've been travel hacking (which partly involves applying for lots of credit cards) for years and I've never heard that. I’ve never heard this either. Credit bureaus want to see that you have paid off debts over time like cars and houses and other loans. Also really important is the ratio of credit you use in a given period vs how much total credit you have. Making payments on time is key, whether or not you carry a balance. Longevity and number of accounts is helpful too. Re: points and Amex… 17 hours ago, purplekow said: I see no reason for automatic payments of utilities and the like when I can have them paid automatically through Amex and get the points. When I redid my kitchen, I got all of my appliance with points and racked up a bunch of new points with the purchase. Good for you setting automatic bill payments with your credit card. I do the same. Amex charges merchants up the ass in processing fees though. That’s one of the reasons you get such generous points and why some merchants won’t accept Amex. Costco, for instance won’t accept Amex. Remember that when hiring or supporting a local business you care for using your card to pay. Lots of clients in this industry pay cash anyways, so there’s not much I can grumble about. Still, those points come directly out of merchant pockets and indirectly back into your own pockets via points benefits. When you use Amex (and other cards with point benefits) to pay me, I am essentially subsidizing your appliance purchases by getting less of the face value money you paid me. I would rather you pay for your own vacations and goods than tax me for it. But that’s just me. Policies and fees vary between credit card processors. It matters more in some cases and not at all in others. I accept Amex and try not to think about it very much. After all, I would rather have your business with a small chunk taken out than not have the business at all! + sync, + Charlie, Shoedog112 and 1 other 4 Link to comment Share on other sites More sharing options...
+ purplekow Posted January 6 Share Posted January 6 5 hours ago, Simon Suraci said: I’ve never heard this either. Credit bureaus want to see that you have paid off debts over time like cars and houses and other loans. Also really important is the ratio of credit you use in a given period vs how much total credit you have. Making payments on time is key, whether or not you carry a balance. Longevity and number of accounts is helpful too. Re: points and Amex… Good for you setting automatic bill payments with your credit card. I do the same. Amex charges merchants up the ass in processing fees though. That’s one of the reasons you get such generous points and why some merchants won’t accept Amex. Costco, for instance won’t accept Amex. Remember that when hiring or supporting a local business you care for using your card to pay. Lots of clients in this industry pay cash anyways, so there’s not much I can grumble about. Still, those points come directly out of merchant pockets and indirectly back into your own pockets via points benefits. When you use Amex (and other cards with point benefits) to pay me, I am essentially subsidizing your appliance purchases by getting less of the face value money you paid me. I would rather you pay for your own vacations and goods than tax me for it. But that’s just me. Policies and fees vary between credit card processors. It matters more in some cases and not at all in others. I accept Amex and try not to think about it very much. After all, I would rather have your business with a small chunk taken out than not have the business at all! Most of my bills are utilities and other large companies. When I eat at a restaurant I usually pay cash for the tip and use the card for meal. Businesses that rely on credit cards up their price to cover the 2 to 4 % that the credit care charges so it is really the cash payers who are subsidizing my appliances and I thank them for it. + Charlie 1 Link to comment Share on other sites More sharing options...
+ sync Posted January 6 Share Posted January 6 16 hours ago, Simon Suraci said: I’ve never heard this either. Credit bureaus want to see that you have paid off debts over time like cars and houses and other loans. Also really important is the ratio of credit you use in a given period vs how much total credit you have. Making payments on time is key, whether or not you carry a balance. Longevity and number of accounts is helpful too. Re: points and Amex… Good for you setting automatic bill payments with your credit card. I do the same. Amex charges merchants up the ass in processing fees though. That’s one of the reasons you get such generous points and why some merchants won’t accept Amex. Costco, for instance won’t accept Amex. Remember that when hiring or supporting a local business you care for using your card to pay. Lots of clients in this industry pay cash anyways, so there’s not much I can grumble about. Still, those points come directly out of merchant pockets and indirectly back into your own pockets via points benefits. When you use Amex (and other cards with point benefits) to pay me, I am essentially subsidizing your appliance purchases by getting less of the face value money you paid me. I would rather you pay for your own vacations and goods than tax me for it. But that’s just me. Policies and fees vary between credit card processors. It matters more in some cases and not at all in others. I accept Amex and try not to think about it very much. After all, I would rather have your business with a small chunk taken out than not have the business at all! Your explanation for accepting Amex has given me the understanding for how they have been able to sustain their upper range processing fees. I use my Amex card sparingly largely because some merchants won't accept it. Simon Suraci 1 Link to comment Share on other sites More sharing options...
+ Charlie Posted January 6 Share Posted January 6 I used to often find that someone wouldn't accept an Amex card as payment, so I always ask before presenting a card, but it has been a long time since anyone has turned down my offer of my Amex card for anything. + Pensant and marylander1940 2 Link to comment Share on other sites More sharing options...
+ Coolwave35 Posted January 6 Share Posted January 6 The only place I know that doesn’t take Amex is Costco. It used to be all they took but now they’re only Visa. + Charlie 1 Link to comment Share on other sites More sharing options...
chitownguy Posted January 7 Share Posted January 7 On 1/5/2024 at 2:13 AM, Shoedog112 said: I’ve always left a small balance on the one credit card that I use for everything besides my debit card. I’m not sure where I heard this info, but was under the impression that having zero balances on credit cards could affect your credit score? It never made sense to me, but for some reason went along with it. I’m not a financial expert by any means but if I’m believing misinformation, please let me know! 🙏. Otherwise, I have no credit card debt other than less than $1,000 intentional balance. Having zero balances on your credit cards or paying them in full each month will not hurt your credit score. It can actually increase your score. One of the factors used in computing your score is your credit card use percentage. Total debt on all your cards divided by the total credit limit on all cards. A high percentage will lower your score. Having no balance or paying them off lowers your use percentage. Luv2play 1 Link to comment Share on other sites More sharing options...
Bokomaru Posted January 7 Share Posted January 7 (edited) What’s annoying about the article posted on this thread is that it doesn’t make clear that the debt numbers quoted are debt on which interest is being paid. Don’t assume. There’s a lot of sloppy journalism in the world. Newsflash: when we charge something to a credit card, that *is* debt, even if it’s being paid off in full each month. As an aside, @Vegas_Millennial I urge you, if your loans are low or no interest, to consider starting up your Roth or 401k contributions again. The tax loss incurred (now or in the future) could well outweigh the interest payments on the debt. Edited January 8 by Bokomaru Grammar + m_writer 1 Link to comment Share on other sites More sharing options...
+ Vegas_Millennial Posted January 7 Share Posted January 7 1 hour ago, Bokomaru said: What’s annoying about the article posted on this thread is that it doesn’t make clear that the debt numbers quoted are debt on which interest is being paid. Don’t assume. There’s a lot of sloppy journalism in the world. Newsflash: when we charge something to a credit card debt, that *is* debt, even if it’s being paid off in full each month. As an aside, @Vegas_Millennial I urge you, if your loans are low or no interest, to consider starting up your Roth or 401k contributions again. The tax loss incurred (now or in the future) could well outweigh the interest payments on the debt. Thanks for the advice. I'm ahead of the game on my retirement contributiins, having contributed 30%-50% of my gross salary every year in my 20s, and over 25% of my gross salary every year in my 30s, all to Roth's. Most of my debt is low interest 2%-3% mortgage and temporary credit card offers, so I had been just piling my salary into Roth's instead of paying down debt. Now that I have some debt at over 8% interest, I want to aggressively pay off that 8%+ debt before I go back to funding my Roth's again. + Charlie, + m_writer, + stevenkesslar and 2 others 5 Link to comment Share on other sites More sharing options...
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