Delinquencies are up. Credit card companies are writing off more and more of that debt. Current trends are matching 2008 increases.
The orange man.I wonder why...
Imagine a world where most of the economic gains go to the people at the top, and the economic system is designed to keep everyone else in something akin to wage-slaveryI don't get how anyone actually keeps a balance on their credit card. Use it to buy stuff, but pay it off as you go. Even if you don't have the cash, use a credit line, which has much lower interest. Ideally you should not hold on to credit at all but it's harder to not do now days since everything is so expensive.
This but....Problem is "means" doesn't cut it. $20 an hour used to be a great jerb. That won't pay the rent/car payment and groceries.Primary rule: Live within your means.
I have no issues and I'm nowhere near the "top".
By having expenses that outpace your ability to pay for them. Even a few limited 'emergency, once a decade' spends can build several years' worth of expenditures all at once.I don't get how anyone actually keeps a balance on their credit card. Use it to buy stuff, but pay it off as you go. Even if you don't have the cash, use a credit line, which has much lower interest. Ideally you should not hold on to credit at all but it's harder to not do now days since everything is so expensive.
By having expenses that outpace your ability to pay for them.
Shit, someone should have told me that before I needed car work done that cost more than I had. If I only had known I wouldn't have spent it, and instead lost my job.- NEVER, "in normal circumstances", spend above your means
I've had unexpected expenses that cleared my monthly salary. That's still dumb though, because if I've got a month's salary to spare, I'm putting it on debt (which reduces my monthly, or at least long-term expenses), not sitting on it like a sad drakeling's treasure hoard.- ALWAYS keep @ least 1 months worth of salary EXTRA available (preferably more), in case of unexpected expenses (like car problems, major appliances problems, etc)
Shit, someone should have told me that before I needed car work done that cost more than I had. If I only had known I wouldn't have spent it, and instead lost my job.
I've had unexpected expenses that cleared my monthly salary. That's still dumb though, because if I've got a month's salary to spare, I'm putting it on debt (which reduces my monthly, or at least long-term expenses), not sitting on it like a sad drakeling's treasure hoard
By having expenses that outpace your ability to pay for them. Even a few limited 'emergency, once a decade' spends can build several years' worth of expenditures all at once.
Or: shit happens. Too many things break at once, too many expected expenses piled on top of unexpected ones, medical bills, missed rent payments from a property, or what the hell ever else eats away at monthly expectations. If you have money, you tend to not end up in debt. If you are ahead from early on, you can usually cover stuff that comes up fast enough to stay ahead of it. If you don't, odds are good one solid kick in the nuts is enough to keep you on your heels for years' worth of expenses later, even if you 'live within your means'.Hence the "in normal circumstances" part ... and that falls in the unexpected expenses "category".
This means you ALREADY spent more than you earned: unless that's because of previous unexpected expenses, you're living above your means.
Yeah those are better, but not as easy to obtain (or at least not as advertised), sometimes have shit tacked on to them, and for modern generations aren't as accessible (ask anyone under 40 how many checks they have on-hand).Yes but why not at least pay it with the credit line, it's lower interest. Credit lines are like 5-10% while credit cards are like 19%. In an ideal situation you should have savings built up for emergencies, but that is hard to do now days, so it's a good idea to have a credit line even if you don't need it at least it's there if you do.
ThisOr: shit happens. Too many things break at once, too many expected expenses piled on top of unexpected ones, medical bills, missed rent payments from a property, or what the hell ever else eats away at monthly expectations. If you have money, you tend to not end up in debt. If you area ahead from early on, you can usually cover stuff that comes up fast enough to stay ahead of it. If you don't, odds are good one solid kick in the nuts is enough to keep you on your heels for years' worth of expenses later, even if you 'live within your means'.
That's a loaded term anyhow, it's basically a no true Scotsman fallacy. Anyone who ends up in debt clearly wasn't living within their means, whereas anyone who doesn't must be. I spend less than a quarter of my salary on rent, never travel, and have an extremely limited entertainment budget, and I'm still spending more on debt than anything else, but inevitably every few months some gigantic damn multi-thousand dollar expense rears it's head and pushes everything right back where it was.
Also never get laid off because the company wants to inflate their stock price. And don't buy a house. Also probably don't rent anywhere desirable.Primary rule: Live within your means.
I have no issues and I'm nowhere near the "top".
Corporations have always been greedy. It's just the government gives less fucks than ever and lets them swallow up competitors to create uncompetitive markets.It's been shown in various studies and articles that a lot of this inflation is actually greedflation. What do you think companies are not going to use the cover of inflation to jack up their profits?
It's about time we start to correct this increasingly irresponsible use of the word inflation without taking into account corporate greed.
Nah the problem is people spend way too much on things they do need like housing, medical care, education, vehicles, and such. All that shit has skyrocketed in price this century.People spend too much on things they don't need. A portion of the working class does live on poverty levels especially depending on their location. But generally a lot of people just buy too much and don't budget their money. I am a good example, 30 years ago I was always broke and had about $4000 in credit card debt and other debt on top of that. I got fed up and did the Dave Ramsey thing before I knew what it was. I worked hard, which got me a promotion. I sold some stuff, busted my ass, and paid everything off within 9 months. I started saving, getting 6 months worth of wages for an emergency fund, and then hitting the retirement hard. I also saved up for my next car before I bought it. A year before this if you would have asked if it was possible I would have said I needed a huge raise. Actually I needed to get control of my spending.
I wish people knew how much better it is actually having money in case of an emergency, and actually earning interest rather than paying interest. If my car breaks down or my furnace dies it sux, but it's handled, and then I put that money back. My coworker and I were discussing this at work and he said how much do you have in your checking and I said about $4,500 right now to which he replied man if I had that I'd buy a keg of beer and a 75" tv to which I replied that's why you'll never have that.