How America racked up a record $1 trillion credit card bill

FlyingSquid , 7 months ago

We had to do a refinance of our mortgage to cover credit card bills. And it wasn’t enough to cover the thousands we owe in medical debt. Ain’t America grand?

grue , 7 months ago

If you don’t mind me asking, what do you mean by “had to?”

Turning unsecured debt (credit cards) into secured debt (mortgage) is such a generally-regarded-as-bad move that I couldn’t imagine doing it unless I was ordered to do so by a court. Given that a having a mortgage implies that one already owns a house and therefore doesn’t necessarily need good credit in the same way a renter does, I suspect I’d be more inclined to just default on the unsecured debt instead.

That goes double for the medical debt (including avoiding even transforming it into credit card debt), since IIRC it’s even harder for the creditors to collect on and in some cases is no longer even allowed to affect your credit score.

FlyingSquid , 7 months ago

“Had to” because we couldn’t keep up the payments any other way. We’re down to a single income, which doesn’t help. And my wife- who technically owns the house herself- has impeccable credit. Defaulting on the debt would destroy that. If we want any hope of moving, we have to be able to afford a mortgage. We can’t do that yet even though we want to, but if she defaulted on the debt, we’ll definitely be stuck here forever. Defaulting on medical debt may not affect her credit rating, but defaulting on credit card debt sure as hell would.

grue , 7 months ago

Hmm, I can see how having a desire to move in the short term would change things.

Ashyr , 7 months ago

“Even if you’re working and your wages are up, your rent costs more, your groceries cost more, your gas costs more, everything costs more,” said Tedd Rossman, senior industry analyst at Bankrate.com. “So people don’t feel like they’re getting ahead."

Inflation is how it happened. People can’t afford to live and there will be a reckoning when the bubble bursts. The rich steal at their own peril, capitalism must consume itself.

Also, Tedd, people don’t feel like they can’t get ahead because they can’t. That’s not a feeling, that’s a fact.

Spacehooks , 7 months ago

I REALLY hope we are not going to have a repeat of the 1930’s.

Wooster , 7 months ago

Serious question:

Would anything short of that lead to reform? I’m not eager for a second Great Depression, but considering we can’t even pretend to get climate change under control, I can’t see the 1% changing their policies until it hurts them, and bad.

Spacehooks , 7 months ago

I doubt it ww3 going to lead to fallout or madmax. Maybe now that the boomers are dropping finally we can see some change. I don’t see any reforms happening until 2028 and then it will take years to go into effect. I’m hoping the reductions of population is going to save us.

BruceTwarzen , 7 months ago

Now way, it's gonna be way worse.