• protist@mander.xyz
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    9 months ago

    Almost $13 trillion of the $17.5 trillion US household debt statistic is housing debt. See: mortgages, which are stable, fixed payments, but new ones are more expensive now than they were last year or the year before. The article doesn’t mention this and makes it sound like it’s all credit cards. The Federal Reserve press releases sound like this too. Almost feels like they’re trying to gin up doubt and panic

      • protist@mander.xyz
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        9 months ago

        To stop or slow down wage growth. If people are fearful of their economic positions, they’re more likely to stay in lower paying jobs, less likely to take risks like unionizing, and more likely to cope with shitty work environments. Large businesses are playing this game too, where you see layoffs happening all over the place while many of those same businesses record record profits. This keeps their workforces in fear for their livelihoods and makes them easier to keep in line.

  • ElderberryLow@programming.dev
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    9 months ago

    Man we need more financial literacy for kids prior to 18. But at the same time, our entire life is just one large conglomerate commercial. It’s stacked against us. Our economy thrives on us spending above our means. If everyone was to stop spending and pay off their debt, we’d be in a huge depression lol.

    • malloc@lemmy.world
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      9 months ago

      I do believe financial literacy plays a huge part in it. But at the same time the credit card industry is sort of known to hand out credit cards like candy.

      Some of yall probably are not aware but before the CARD act, the CCC companies would send reps to American campuses. “Sign on bonuses” were given to students who applied for their card. Usually cheap trinkets like a bong or even just straight cash.

      Students without any stable job would get credit limits that would not make sense. This temptation lead to poor spending habits and accumulation of debt. Possibly even filing for bankruptcy later in life or just having bad marks on credit reports due to non-payment and sent to collections (this impacts ability to get other loans).

      It’s stacked against the normal person.

    • iain@feddit.nl
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      9 months ago

      I don’t think financial literacy is the problem. I think the majority of the debt is incurred because people need to spend money on necessities. No amount of sound financial planning can make that go away

      • malloc@lemmy.world
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        9 months ago

        This is also true! Increased cost of living combined with stagnating wages. This is partly the reason why “payday loans” exist.

    • malloc@lemmy.world
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      9 months ago

      On some cards I have well over $50K limits. But really only use 1-2% of these limits. I can’t imagine people trying to carry balances on credit cards.

      Probably when the CC industry busts my limits will probably get reduced :(

      • Deello@lemm.ee
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        9 months ago

        Some people don’t “carry balances” on credit cards, they “carry their lives on credit cards.” Corporations making a killing and people out here getting killed. Being poor is expensive.

    • GiddyGap@lemm.ee
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      9 months ago

      They want you to spend more on things you can’t afford and hopefully pay more interest.

  • GiddyGap@lemm.ee
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    9 months ago

    American consumers are just learning from what they’ve seen their government do for decades. Put everything in the big credit card.