by Outcast_Searcher » Wed 03 May 2017, 23:43:54
$this->bbcode_second_pass_quote('onlooker', 'h')ttp://www.zerohedge.com/news/2017-05-01/45-americans-spend-half-income-repaying-excessivefrivolous-credit-card-debts
45% Of Americans Spend Up To Half Their Income Repaying Credit Card Debts
Part of the 80% referenced in the OP link
And things like this are why I argue that a LOT of what we call first world "poverty" in the US isn't poverty at all. It's outspending one's income, as though actions had no consequences. And then blaming everyone else of course.
Think of it. 45% of Americans, many spending a huge amount of income on credit card debt. Even as credit cards charge huge interest rates (I noticed a recent mailer saying my rates increased again to 25+%) -- I'm sure glad I NEVER pay a cent in credit card interest. (Oh, and I should have pretty good credit.What the he** kind of credit card interest rates do people have with BAD credit? So is usary completely a thing of the past in the US?). My highest paying "high yield savings account" pays 1% interest. About 0.98% better than most money market funds these days. So to me, credit card interest rates seem like a deal from the Ninth Circle of Hell.
So they're throwing away a HUGE proportion of their income by failing to wait to buy a lot of consumer junk they likely don't need, a little sooner.
I've said it before and I'll say it again. K-12 public education truly needs to have some basic home finances added as a requirement. Maybe if people had some clue how much money they threw away with such decisions, they'd dig their financial holes more slowly.
And I'll add to that teaching some self discipline. My parents used a combination of telling, showing by example, yelling, punishing, and hitting depending on the circumstances and how badly I screwed up. Oh, and assigning and expecting lots of hard work. I realize nearly all that is frowned on or impossible in public schools today, so I'm not sure the schools really can teach self discipline effectively, but I still say it's badly needed.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.