Credit card debt hits 1 trillion! How much do you owe?

[Pd1_jap]

Before I was diagnosed with a long term illness (my immune system is too aggressive and likes to chew away at various parts of my body) I had zero credit card debt. But now I don't care. If I run up a balance I just transfer the balance to a zero interest card and buy what I want. 

I have about 25k on cards that I don't pay interest on. 

Some comments on here suggest that not having card debt is better for your credit. My credit score when I had 0 debt was 720. With the credit card debt my score is 795. 🤷‍♂️

[GlenDale]

Very happy to say I am debt free. I made certain I entered retirement [2023) free and clear.

no credit card debt, no mortgage. I use one credit card for all daily transactions because I get cash back rewards, and I pay it off each month in full. I’m averaging $180 per month cash back

Edited January 11 by GlenDale

[maninsoma]

On 1/4/2024 at 10:36 PM, purplekow said:

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.  

If you can pay a regular monthly bill using a credit card with no fee, then doing so makes sense.  Where I live, if I were to pay my monthly electric bill using a credit card I'd get charged a fee by the utility company that would outweigh any points benefits from the credit card.  For nearly everything else, however, I pay using a credit card to rack up points/miles/cash back.

[maninsoma]

I was one of those who was nearly financially illiterate in my twenties.  I only had one major credit card (and a store card).  I maxed it out (which I think was $2,000), my dad paid it off for me and then I proceeded to max it out again within a year.  It didn't help that my salary was low and I was living in one of the most expensive cities in the U.S., but more than that it really was that I just didn't understand money beyond a superficial level.  Example: I thought that buying a new pair of pants at 33% off was a great savings for me, not thinking about the fact that not only was I paying 18% interest on the purchase price but I was also paying 18% interest on everything else I put on the card.  I really credit one of my exes with helping me understand that instead of saving money buying things on sale that I was actually paying 18% more for everything because all I could afford to pay most months was my minimum payment.  With some basic math (I at least had math skills), he helped me see how much more I was spending because I was carrying credit card debt.  Most enlightening was realizing that if I paid off my credit card I could actually afford to spend a little more every month because I wouldn't be paying interest charges.  The only downside was that I had to stop some of my spending for a certain period of time so I could pay the outstanding balance.  I think that took me just shy of a year.  Once that year was over, I had learned to live within my budget so I never charged things I couldn't afford to pay for at the end of the statement period. This was all nearly 40 years ago, and I haven't carried a credit card balance since with a few exceptions (promotional offers for 0% interest for a specific time).

To anyone reading this thread who carries credit card debt who has the ability to change their spending habits, I encourage you to do so.  A period of foregoing nonessential expenses (eating out, buying things you don't really need but just want, etc) will pay off nicely for you going forward as long as you internalize the lesson of living within your means.

I realize this isn't helpful for those who are carrying debt due to either some unfortunate circumstance such as illness or simply have so many obligations such as a family to support.  I think a lot of people get into debt because they don't see the bigger picture, though, and they can dig themselves out if they choose.

[TonyDown]

I've come to the same conclusion, rather than hurrying to buy while there is a sale, why not wait a while until I really need something or until I see something I like a lot.  

That said, I have avoided credit card debt entirely.  I'm following in my dad's footsteps.  Am I the only one?

Bless their hearts, I know the credit card companies are anxious for me to change my ways.

[cany10011]

Zero credit card debts, no car loans,  mortgage free on one house, and will be free on another in 2 months! More play $$$ for me. Although my condo in manhattan has costly maintenance that will never go away, neither will my proclivity for a certain shared hobby

Edited March 1 by cany10011

[+ Charlie]

Requests for donations to charitable or political causes these days almost always include a credit card option. I never use it. If I can't send a check or give cash, I won't donate. When I open my wallet or checkbook, I can see exactly what I can afford to give, but with a credit card I feel pressured to be too generous. I also don't want the person requesting the donation to know what credit accounts I have.

[+ Lucky]

1 hour ago, Charlie said:

Requests for donations to charitable or political causes these days almost always include a credit card option. I never use it. If I can't send a check or give cash, I won't donate. When I open my wallet or checkbook, I can see exactly what I can afford to give, but with a credit card I feel pressured to be too generous. I also don't want the person requesting the donation to know what credit accounts I have.

Many credit cards allow virtual numbers to be used so that your real credit card number is hidden.

[+ Charlie]

1 hour ago, Lucky said:

Many credit cards allow virtual numbers to be used so that your real credit card number is hidden.

Yes, but I don't even want them to know what kinds of credit cards I possess.

[TonyDown]

5 hours ago, marylander1940 said:

1.2 trillion and counting...

 

 

 

🎼 We listen and we don't judge. 🎵🎶

🤣🤣 

I paid off my mortgage early.  That used to be the mantra.  Send extra $$ each month, so I did.  Never had a car loan.  Buy used, paid cash.    Do not carry credit card debt.

That all worked!

There is a sweet, young dude on YT driving the West Coast in his old truck, cooking his own meals, camping, surfing and hiking with friends.  Some kids find ways to enjoy life without creating huge debt.  And really, this cute young dude and his friends seem way happier than the TikTok crowd living with huge credit card debts on the Zack Rios channel.

 

But yeah, I watched Zack's entire video on credit card debt and need to remind myself...

🎼 We listen and we don't judge. 🎵🎶

 

Edited May 20 by TonyDown

[+ purplekow]

Credit card on automatic fuil pay each month.  One credit card that I use and one that I do not jthat I have ust in case the other one is lost or more likely misplaced.  Misplaced my one credit card on my move to Palm Springs and did not have an extra and the temporarily misplaced card resulted in a bit of a hassle, which resulted with my three dogs and I sleeping in my car in my garage. (Furniture had not arrived and there was a black out on my street in Palm Springs the day I arrived.) That of course is another story, but as a result, I got the backup credit card.  Before that, it was just the one card.  

So, for me, no debt except for my eternal indebtedness to those that bring joy to my life. 

Edited May 20 by purplekow

[Kevin Slater]

55 minutes ago, purplekow said:

Credit card on automatic fuil pay each month.  One credit card that I use and one that I do not jthat I have ust in case the other one is lost or more likely misplaced.  Misplaced my one credit card on my move to Palm Springs and did not have an extra and the temporarily misplaced card resulted in a bit of a hassle, which resulted with my three dogs and I sleeping in my car in my garage. (Furniture had not arrived and there was a black out on my street in Palm Springs the day I arrived.) That of course is another story, but as a result, I got the backup credit card.  Before that, it was just the one card.  

So, for me, no debt except for my eternal indebtedness to those that bring joy to my life. 

You might put like one charge a year on that backup card just to keep it open and in good standing.

Kevin Slater

[TorontoDrew]

I got myself into a little trouble over 30 years ago.  It was $7,000 which was a lot for me then. I've was lucky right after that to move to a much more lucrative career path and haven't done it again.

[+ sync]

15 hours ago, TorontoDrew said:

I got myself into a little trouble over 30 years ago.  It was $7,000 which was a lot for me then. I've was lucky right after that to move to a much more lucrative career path and haven't done it again.

Same for me.  My experience was considerably more than $7,000.  The recovery was long and trying, but  it rendered me some commonsense resistance to impulse spending.