Our country (USA) has +$980Billion in credit card debt.
Our inflation would reduce dramatically if people stopped spending more than they make and government begin reducing all the unemployment benefits and welfare subsidies.
People would have to go back to work and live within their means.
Demand for goods and services would fall.
Ease supply chain challenges that are adding to inflationnary costs as well.

There are some things that can be done without government intervention;
Stop spending what you do have and go back to work.

EZ

Just not that easy for me at least. I do a very good job now, no debt good savings and spartan spending. If I buy a new gun I try to get rid of two. If I buy six new shirts I get rid of at least that if not more.

But I was raised to be very materialistic, very selfish; that takes decades to wash off, ( for me,) . If it wasn't pouting, I have in the past sometimes wished for a better lot in life, ( given not earned,) and only now in my long delayed maturity can see that things really were best for me as they were, not what I wanted.

Look around Man, in all facets and venues we are encouraged to spend, spend, spend, buy, buy, buy. It ain't easy.

Bullshit. Other than exceptions created by sudden, unexpected expenses, such as health issues, Americans simply spend WAY above their means, put it on plastic at ridiculous interest rates, then complain that they can’t get caught up. SPEND LESS, IDIOTS!

quote:

Originally posted by jdollar:
Bullshit. Other than exceptions created by sudden, unexpected expenses, such as health issues, Americans simply spend WAY above their means, put it on plastic at ridiculous interest rates, then complain that they can’t get caught up. SPEND LESS, IDIOTS!

I think that's what I said. I used to spend like an idiot.

E commerce is not helping matters. More Americans buy on line. I do. The only way to buy on line is with plastic or some sort of PayPal.

I pay me CC off to zero each statement.

E shopping I bet is really getting some folks.

you buy with a debit card not a credit card.
why you'd pay 20% more for something is beyond me.

I dunno.
I live a pretty simple life, and one that's cash based.
can't buy nuthin if you ain't got the money in hand or in the checking account.

probably why my vehicles are 15-35 years old and my house is paid for.
well rented back from the government anyway.

but I got what I got.

This is actually one of the few, decent topics that I’ve seen in this forum.
I have a serious question. Do you believe this generation (20-30 years olds) are better or worse with money, than the previous generation?

I actually think that many are better. I could be wrong and I understand that it’s now easier to get in debt.

Some undoubtedly are better, but many are worse and what's more have an entitlement attitude (see the whole student debt thing...)

Most of the relatives I have who are in the 15-30 age range are perpetually paying off a balance on a CC, and as soon as they get it paid off (usually by the bank of dad clearing it for them) always respend and get themselves back in the same situation.

As to debit vs credit card- the credit card is much better protected than the debit card if you get hacked or someone steals your information. If you have the mental toughness to avoid spending more than you can afford to pay off, the CC is the way to go.

One other point is that the current younger types have very different attitudes than I recall my group having. They don't tend to see buying a house or investment type items the same. They buy experiences more than items... out to eat, vacations, concerts in far away cities, etc.

quote:

you buy with a debit card not a credit card.
why you'd pay 20% more for something is beyond me.

As for the more political discussions here, you have it backwards.

A credit card offers free credit for 30 days. You're not liable if you get ripped off. You can earn airline mileage. You get one statement for maybe a hundred charges.

Credit cards are for people who can manage credit, though. If you can't manage credit, then stick to your debit cards.

I pay my credit cards at every statement. I don't even own a debit card.

Slaves to the banks.

People are too stupid to stupid to realize that for each $100 worth of goods they are getting, they are paying at least double that to the banks.

In England they have special credit cards, for those who are unable to get a normal one from banks because they are bad debtors.

They also have what they call PAY DAY lenders.

Which at one stage were charging over 5,000% per year.

Some people spend their entire lives in debt!!!

quote:

Originally posted by Jason P:
This is actually one of the few, decent topics that I’ve seen in this forum.
I have a serious question. Do you believe this generation (20-30 years olds) are better or worse with money, than the previous generation?

I actually think that many are better. I could be wrong and I understand that it’s now easier to get in debt.

Until you go back to the 1980s…they are about the same.

I employ quite a few 20-30 and have since the 90’s. The spending attitudes amongst the ones who work are about the same for that time period (20-30 years). What is different is the number willing to/have to work. Labor for our industry began being short ~2010, trending negative there on. The pandemic steepened the negative curve. We pay well and labor has become our rate-limiting-factor in growth. Lack of labor has flat-lined our growth while demand for professional services is at an all time high.

A lot of non asset based fiscal liabilities!!!

quote:

Originally posted by crbutler:
Some undoubtedly are better, but many are worse and what's more have an entitlement attitude (see the whole student debt thing...)



One other point is that the current younger types have very different attitudes than I recall my group having. They don't tend to see buying a house or investment type items the same. They buy experiences more than items... out to eat, vacations, concerts in far away cities, etc.

If desired this will keep the boomers working longer (70 or more) due to demand for their work ethic and business knowledge.

quote:

Originally posted by ledvm:

quote:

Originally posted by Jason P:
This is actually one of the few, decent topics that I’ve seen in this forum.
I have a serious question. Do you believe this generation (20-30 years olds) are better or worse with money, than the previous generation?

I actually think that many are better. I could be wrong and I understand that it’s now easier to get in debt.

Until you go back to the 1980s…they are about the same.

I employ quite a few 20-30 and have since the 90’s. The spending attitudes amongst the ones who work are about the same for that time period (20-30 years). What is different is the number willing to/have to work. Labor for our industry began being short ~2010, trending negative there on. The pandemic steepened the negative curve. We pay well and labor has become our rate-limiting-factor in growth. Lack of labor has flat-lined our growth while demand for professional services is at an all time high.

Interesting thread, a whole bunch of painting with a really wide brush appears to be going on though.

You can use credit cards and even carry a balance without paying high interest. If you have decent credit the number of zero interest cards out there is huge. I would rather invest someone else's money at 0% than use my own.

I bought my house at 27, traveled a ton, saw literally hundreds of concerts all over the place, put myself through school. Life does not have to be all or nothing. You can save, buy investments and enjoy the journey.

No mortgage, travel snd pay up front, and I doubt 20-30 years olds managed money on the whole better than they do now.

Like to see data not just the 80s were better conclusion.”

Why deal with brick and mortar stores that do not have what I want.

You are really the exception in my experience.

Even folks with good job degrees (nursing, nurse practitioners) are saying they need help paying for their schooling. Lots of docs do also (I get a little testy about paying loan repayment to folks, but they are unwilling to give similar amount bonuses to those who paid their loans off or never got them in the first place…)

That student loan debt forgiveness is a political point now says something about the current young population.

I don’t disagree that some are good. There is more information and resources available than ever before.

One sees more and more people living on credit.

My feeling isn’t that if someone chooses to buy experiences that is bad… if they do it with money and not credit.

But when someone doesn’t prepare for the future, and then FAGB, I really don’t feel that I should be providing a robust safety net (through taxes) for their poor choices.

quote:

Originally posted by LHeym500:
No mortgage, travel snd pay up front, and I doubt 20-30 years olds managed money on the whole better than they do now.

Like to see data not just the 80s were better conclusion.”

Why deal with brick and mortar stores that do not have what I want.

Looked it up and the most recent data from 2022 with American’s credit card debt as an average of $5,221.
2019 was reckoned at $6,194

I've no idea how COVID didn't actually increase the reported number.

One thing I did notice the other day (and something I'd actually like to find if you all are seeing the same thing) is the amounts people are spending at the gaspump.
I was filling my tank and as I looked around at the sales on the other pumps, I saw two $5 sales, an $8 sale, a $10 sale and one for $46.

This, I believe, may be some indicator of what money the average person has at their disposal.
I remember dropping a couple bucks in the tank to get me to the next paycheck but that was when gas was $1/gal. and I was a kid who was generally broke.
A gallon and a half isn't much to put in the tank these days...

I charge literally everything because all business take credit cards. My bill averages $5000/ month but once or twice a year will be $20,000+ when I book airfare, safaris or cruises. I ALWAYS pay it in full, thus I get a 45 day interest loan every month( 30 day billing cycle plus a 14 day grace period before payment due) plus enough frequent flyer miles to travel for free. What’s not to love. I’ve never paid a dime in interest and I have no sympathy for idiots racking up charges for $5-7 cups of coffee, $200 Nike’s or a new BMW. Play stupid games, win stupid prizes.

The thing about credit cards, the seller knows he'll get paid and forfeits the 3% charge for that comfort. No bad check, no counterfeit cash.

The buyer knows he can cancel the sale if it goes bad.

The credit card can be a civilizing influence if it's not abused.

My friend writes "...ask for ID..." on the backs of his credit cards.

It's one helluva problem that Diners Club started in the 50s.

quote:

Originally posted by jdollar:
I charge literally everything because all business take credit cards. My bill averages $5000/ month but once or twice a year will be $20,000+ when I book airfare, safaris or cruises. I ALWAYS pay it in full, thus I get a 45 day interest loan every month( 30 day billing cycle plus a 14 day grace period before payment due) plus enough frequent flyer miles to travel for free. What’s not to love. I’ve never paid a dime in interest and I have no sympathy for idiots racking up charges for $5-7 cups of coffee, $200 Nike’s or a new BMW. Play stupid games, win stupid prizes.

That's a maturity and wisdom that I'm sure you found decades before I and most.

I didn't do myself any real harm, but I certainly didn't get myself ahead.

In a cultural sense or perspective I'd like to see our society rid itself of consumerism, materialism, narcissism.

We don't all need bigger homes, we don't all need faster cars. One shotgun and a couple rifles will do, two dozen changes of clothes means we do laundry every two weeks.

I'd prefer my fellow Americans spend their earnings on friends and family, on experience and events. Say no to assets, possessions, baggage. Cut off Amazon.

quote:

Originally posted by Huvius:
Looked it up and the most recent data from 2022 with American’s credit card debt as an average of $5,221.
2019 was reckoned at $6,194

I've no idea how COVID didn't actually increase the reported number.

One thing I did notice the other day (and something I'd actually like to find if you all are seeing the same thing) is the amounts people are spending at the gaspump.
I was filling my tank and as I looked around at the sales on the other pumps, I saw two $5 sales, an $8 sale, a $10 sale and one for $46.

This, I believe, may be some indicator of what money the average person has at their disposal.
I remember dropping a couple bucks in the tank to get me to the next paycheck but that was when gas was $1/gal. and I was a kid who was generally broke.
A gallon and a half isn't much to put in the tank these days...

I commute regularly between Ft Madison, Iowa & Mt. Pleasant, Iowa. I will buy a gallon or 2 to get from Ft. Madison to Mt. Pleasant. Gas in Ft. Madison is 3.19, gas in M. Pleasant is 2.74. That's 45 cents per gallon, about 12-13 bucks in my tank.