Credit Card Debt

[ThomWV]

We are told the problem of excessive credit card debt is widespread.

Here's the question: Have you ever 'maxed out' (reached or exceeded the credit limit) of your credit card(s)?

[Aviation Pro]

1. I cut up all my cards....

...four years ago and haven't looked back since. Cash is king and debit cards rule.

[Xenotime]

18. You can't rent a car with a debit card...

They take the full balance out of your account leaving you with not money.

[Aviation Pro]

20. Care to bet me on that?

This is an urban myth. I've rented a car from the following agencies: Dollar, Avis and Hertz. A couple of times their customer service reps have given me grief, but I just ask for the manager who plugs his or her magical code in the machine and voila! I have a car.

Incidentally, do you know why car rental companies are loathe to take debit cards? Because, with a credit card they can start charging interest everyday until you turn the car in. With a debit card, because it's cash, banks won't allow them to do that.

Again, the scumbagishness of craporations is rooted in their greedy, piggy soul.

[oldhippie]

89. Can you explain this a little?

"Incidentally, do you know why car rental companies are loathe to take debit cards? Because, with a credit card they can start charging interest everyday until you turn the car in. With a debit card, because it's cash, banks won't allow them to do that."

Charging WHO interest? If I rent a car (which I do several times a month) charge it to my credit card, pay the balance at the end of the month (as I always do) I pay no interest to anyone. Even if I did carry the balance, the CC company gets the interest, not the rental car company. Who is the rental car company getting interest from?

[Liberal_in_LA]

22. They put a certain amount "on hold", you adapt.

[JanMichael]

42. Yes you can. Alamo for one.

I've done it and they don't take the full balance of the account.

[Katherine Brengle]

55. You can indeed.

I have done so.

[LSK]

63. I rented a car once in my life

This is something that I could care less about.

[wicket]

84. Went to rent a car on Friday with a debit card from Hertz

They put an extra $100 hold on the card, but you get that back after a few days. But using a debit card was no problem at all.

[Liberal_in_LA]

21. Left those old habits behind. Cut up cards and paid off years ago.

[backscatter712]

34. Me too.

Got in trouble once, ended up with a chargeoff. Had the usual battle with collectors. Finally paid the fuckers off, never looked back.

I hate credit cards, and refuse to have them. All I use is my Visa debit card. If car rental companies and such don't like it, they can suck it and I'll figure something out elsewhere.

[gollygee]

35. Yup - only debit cards or cash

Love it.

[high density]

2. paid off in full monthly NM

[Captain Hilts]

7. Me too. nt

[Deja Q]

3. Other

Use it only as needed, don't keep too many cards open to avoid excessive temptations, and try to pay off the entire balance by month's end.

BTW: MSN says the number of people with massive CC debt is somewhat misleading.

[Gormy Cuss]

68. Great link.

Weston is right - bad polls based on a weak statistic.

The "average debt of >$9000" statistic is misleading two ways. First, it was calculated with only households having at least one credit card (see below for how that's skewing it) and second it's a simple mean without comment on distribution -- the median household debt is substantially lower (again see below.) The much touted average debt number is produced by a private company.

Below are some government survey stats mentioned by Weston in her MSN article:

* The majority of U.S. households have no credit card debt, according to the Federal Reserve's latest Survey of Consumer Finances. About a quarter have no credit cards, and an additional 30% or so pay off their balances every month.

* Of the households that do owe money on credit cards, the median balance was $2,200 -- meaning half owe more, half less.

* Only 8.3% of households owe $9,000 or more on their cards.

[madokie]

4. I've never used one, don' t have any, further more aren't gonna' to have one

debit card works just fine, plus the money in question is drawing interest for ME

[LiberalFighter]

8. Same here... don't buy anything unless I have the money in the bank

[skids]

9. Someday I gotta meet you guys...

...my kind of people.

[scarletwoman]

10. Same here, also. Debit card only. I save money for what I want & don't buy anything unless

I actually have the money to pay for it.

Maybe it's because I was raised by parents who grew up during the Great Depression; the idea of spending money I don't have is just plain foreign to me. I'm perfectly content to make do with what I already have, and in the meantime squirrel money away to meet future purchasing goals.

It's a method that's worked fine for me for my almost 58 years.

sw

[madokie]

14. just think of all the interest money we've saved throughout the years

and when you do want to borrow money to buy something use your own money as collateral and they'll loan the money for hardly any interest all the while your collateral is paying you interest, we do that from time to time because it makes it easy to replace or same as save the money

[scarletwoman]

15. I'm glad you brought up loans. So many people argue that you MUST have a credit card in order

to GET credit. But it's just not true, I've never had a problem taking out a loan when I really needed one (which is seldom).

I have long thought that if so-called liberals REALLY wanted to foment positive change in our political system, they would start with the simple act of refusing to participate in the credit card game. Cut up your cards and quit feeding the corporate financial beast that enslaves you!

sw

[madokie]

52. Sometimes a good Banker can be one's best friend

I'm down here on a local rural level where we all know each other or at least have heard of one another so its a little different than it would be for the ones in the city I'm sure.

[scarletwoman]

58. First off, I only ever use credit unions for my financial stuff -- I'm in a rural area, too.

However, there's credit unions in the cities, too. I don't see why anyone would want to deal with giant multinational corporate banks.

My personal belief is that we'll never be able change the state of our country and the world if we keep empowering the practitioners of predatory capitalsim. Stop cooperating with those that enslave us.

sw

[EST]

5. When?

About ten years ago, I increased the limit on one card, due to the fact that I was using that card as the purchasing cover for my business. I bought five to ten thousand dollars a week worth of product. Of course, we paid it every month and never incurred service charges. Does that count?

We've never exceeded any card, however. Between the two of us, we have seven credit cards and a couple debit cards with automatic overdraft. We've never maxed out any of them.

[Xenotime]

19. Sounds like you have a good credit rating.

[stlsaxman]

6. Credit Cards are truly the Devil's Work.

personally, i don't believe "The Devil" exists but if there is pure evil- it's people who can justify working for these companies.

fortunately, i was able to pay off a $300.00 balance that blossomed into a $700.00 debt in about 3 months time. I got lucky... not many do.

[Liberal_in_LA]

24. That's it. The debt 'blossoms". My debt blossomed to much more than $700. Got smart and got free

[terrya]

11. I've maxed out ALL of the credit cards I've ever had.

Which is why I don't have credit cards.

[Liberal_in_LA]

27. funny thing. You can't even remember what you bought to max out the card. LOL.

[Le Taz Hot]

12. Maxed everything out due to

financial crisis. Paid all (but 1) off. After 30 years of excellent credit, my credit is now in the toilet which was actually the BEST thing that ever happened to me.

[Liberal_in_LA]

26. You are on your way to freedom!

[supernova]

13. Yes, in the late 80s early 90s I did once

got divorced, paid it off in full. I have been debt free for the past 9 years and I intend to stay that way. I have one debit card from my brokerage account. That takes care of my charging needs and it gets settled in full every month.

[bikebloke]

16. Never had one.

And never will. A debit card is fine. If there's something I want, then I start saving for it. Though in most cases, I already had the money. You'd be surprised how many things you no longer covet after a little time has passed.

[pitohui]

17. yes it was my only method to start my own business

long since paid off

and i would not advise anyone to start their own business today, even if they are eligible for conventional lending, because you paint yourself into a corner where when you're over forty you're going to find it difficult, expensive, or impossible to get health insurance

i think we need to give the word entrepreneur back to the french, these days it's too harmful to your family's financial future to take such risk

the credit card issue, tho, is a pimple on the butt of the risk you take by going without health insurance backed by a company that will go to war for you when you're fucked over by your insurer

[Swamp Rat]

23. No, never, and I am now credit card free.

:bounce:

[MadHound]

25. No credit card, no credit card debt.

I learned long ago tha CCs were a sucker's game, one that I wouldn't play.

[scarletwoman]

28. What I don't understand is why so many still willingly participate in this "sucker's game".

Why do so many people keep feeding their money to an institution that enslaves them?

:shrug:
sw

[THUNDER HANDS]

30. for a lot of people

shopping is the only thing that staves off boredom in their life.

[SoCalDem]

44. Why?

Because ,millions of people almost make it from paycheck to paycheck, and there are CC companies who love to prey on these unfortunate folks. sign your name here, and in a few days, a shiny new card will arrive in the mail.. "0 interest for xxx months"..

When you live paycheck to paycheck, and a car breaks down..or a kid needs shoes, or dental work, that credit card becomes alluring.

The catch is, if you are already stretched too thin, how will you pay yet another bill?

That;s how it starts..

[scarletwoman]

47. I understand that. I've lived paycheck-to-paycheck for most of my life, until quite recently.

But I still refused to succumb to the siren call of credit cards, and I'm so glad I did. I know they're predators.

In any case, it's not those folks I'm talking about.

I'm talking about the people who are reasonably comfortable economically who are willfully enabling and supporting the corporate financial complex that is redistributing vast amounts of wealth upward to the super-rich, preying on the poor and financially illiterate, gradually killing off the middle class and destroying our Constitutional republic.

Why would any conscientious and politically aware "liberal" continue to collude with and support such a system? Even if -- like a couple posters on this thread -- you pay off your balance every month and don't pay any interest, you are STILL enabling the credit card companies to collect their fees from the businesses who accept your credit card transactions.

You are STILL feeding the beast. You are STILL willingly empowering these corporate predators who are robbing OTHER people -- even if you personally believe that YOU'RE not being robbed.

sw

[SoCalDem]

49. Preachin' to the choir..

:)..

We cut up our cards years ago.. Love Love Love the Debit card..

Also , now that the kids are grown & gone, we hardly spend anything these days....and if we do, we pay cash.. (even paid cash for our latest car )..

We loathe payments, so we don't play their game:)

[scarletwoman]

50. Great! I just want to see the "choir" get a whole lot bigger!

THROW OFF YOUR CHAINS!!!!

[Aviation Pro]

61. This is why I live completely beneath....

...my means. Housing is less than 10% of my net pay. My car payment is 5% (including insurance, maintenance and fuel). I buy food and actually cook it and take my lunch to work. My exercise routine involves the beach, my rucksack, my running shoes, a swimsuit and no gym fees.

This is not a nihlist lifestyle and my kids benefit from a dad who has time to spend with them pursuing things other than being numbed by video games.

[Aviation Pro]

60. To give them an illusion....

...that they are wealthy.

[HiFructosePronSyrup]

65. Because some of us know how to play the game.

If you've got a credit card and pay it off on time, you build credit and get various benefits, frequent flyer miles fr'instance.

[scarletwoman]

76. And you are supporting a system that enslaves millions more. Just because you're not paying interest

doesn't mean that the credit card companies aren't making money. They collect fees from every single merchant who accepts your credit card in payment. Your use of credit cards helps keep the financial conglomerates in power, period.

But I guess as long as they give you "perks" you're fine with that.

[HiFructosePronSyrup]

85. Oh well.

:shrug:

I'm all for tighter usury laws, but I'm not going to pretend that I'm doing anything wrong.

[scarletwoman]

86. I never said you were 'wrong', I merely pointed out that the use of credit cards has consequences

beyond your own personal life.

sw

[LydiaJ]

29. I maxed out too

It's embarrassing but true. I won't go into why as we all have our own stories but I bet many, if not most folks who get into trouble with CC's aren't doing it out of greed or glutony. It's often a case of need, not want, and a poor choice of trying to solve the problem.

BTW- I don't know if anyone will read this, but :hi: all! I'm new here.

[scarletwoman]

31. Hi Lydia! Welcome to DU!

Glad you jumped in! Hope you have an enjoyable and edifying time on DU!

:hi:
sw

[LydiaJ]

32. Edifying?

:shrug: (Sorry- I love these icon things)

But edifying? Why say you my new friend?
Thanks for the welcome! :hi:

[scarletwoman]

36. "Edifying" as in educational and enlightening -- DU is a great place for learning and

expanding your perceptions. Stick around for awhile, I'm pretty sure you'll see what I mean.

sw

[LydiaJ]

38. I think I will...thank you!

And thank you for the welcome!

[Liberal_in_LA]

33. wow.. your first post. Welcome

:loveya:

[LydiaJ]

37. Thank You!

I look forward to getting to know you guys. It'd be an honor from what I've seen so far. :-)

[Bryn]

39. Welcome, LydiaJ

:hi:

[LydiaJ]

41. Thank you Bryn

Is that some kind of Gaelic name or an abbreviation of something?

[Dystopian]

78. Welcome! Enjoy.....

You're gonna be going for a ride! I don't post much...I just sit back and freak out...
I'm one of those.

peace~

[AZBlue]

80. Welcome to DU!

:hi::hi::hi:

(I love the smilies too and you can use anyone's - if you find one on another site that you want to use, just right-click it, copy the properties line and paste it into your message!)

[Mugu]

40. I'm the type of customer that the card companies hate.

I pay for almost everything with a credit card. I use the card daily and then pay the balance at the end of the month.

No balance carried, pay on time so there are no late fees, no profit from me.

Regards, Mugu

[stop the bleeding]

43. same here,

pay everything with credit and then pay off the balance each month. People talk about APR's and I could care less about it(APR). I can build my credit all the while living within my means and not having the CC companies making a cent off of me due to APR's.

[pitohui]

57. there must be profit somewhere, mugu

because i do the same thing, and yet the cc company continues to give me miles and cash backs

they DO profit, because even if everybody in america pays back on time, cc co's make a fortune off the fees they charge merchants for taking the cards

they don't hate you as a customer, that's just a mind game they play, because wouldn't it be cool to skim profit off both ends of the transaction?

ignore the mind games

they don't need all the bogus fees and charges to customers to be profitable, they are getting their cut of every sale from the merchant

i really think cc co's are the ones who started the rumor that customers who pay off every month are "dead beats," ha, in actually, we are their dream, an almost zero risk profit that they can count on every time we buy

[Mugu]

59. I understand that the merchants pay a discount fee.

That fee is small compared the tremendous amount they made in interest and late fees. But you are completely correct they are still making money.

Regards, Mugu

[W_HAMILTON]

67. Ditto

I don't know why credit card use is so frowned upon. Well, yeah, I do. But when you use them like you do (and like I do), there's not really a downside to using them, as long as you do so responsibly. I have a cash back card, and since I pay off my balance in full every month, it's like I'm making money off the card -- approximately $50 in the past year.

Yes, credit cards are bad, especially if you misuse them and get stuck with all the penalties and fees. But I can't imagine how someone could go without them. Having them just in case of an emergency is reason enough for me.

Having a credit card doesn't automatically mean you have to rack up thousands in debt and pay only the minimum each month.

[Booster]

45. I'm 64 yrs old and if I don't have it by now, then I probably don't

need it (or it just might be stored away in my garage). I avoid using credit cards altogether - have them, but just don't use them. Older people just don't fall prey to the newest thing, like a "got to have it" Ipod. haha

[Adelante]

46. I keep one card for emergencies

I never charge anything, though. If I can't pay for it, I don't buy it.

[H2O Man]

48. Never had one.

I have never had a credit card.

[Katherine Brengle]

56. Same here.

It's rough not having that safety net sometimes, but I don't like paying more than something costs and I don't like the risk of becoming dependent on credit.

[dysfunctional press]

51. as of last friday, we have ZERO credit card debt...

and we paid off 4/5 of our mortgage.

:woohoo:

[Liberal_in_LA]

53. Congrats.

:applause:

[killbotfactory]

54. My wife and I both lost our jobs at the same time

And we had to move out of our house. The only way we could afford to do that was with credit cards, so they got maxed out in our attempt to avoid homelessness.

[jeffrey_X]

62. I got into trouble with CC debt about 10 years ago when I was young and dumb

Thanks to my wife, we are completely credit card debt free and my credit score is now 750. I couldn't obtain any kind of credit about 10 years ago.

[LSK]

64. one card, paid off each month, maybe spend $10-$100 on it each month

Amounts vary, depending if I buy something online.

Had the same card since 1996.

[aikoaiko]

66. Maxxing out a credit card, in and of itself, is not a problem.

Its minimum payments for the life of the loan that are a problem, generally.

[youthere]

69. Yep..maxed out three or four at least...PAID THEM OFF..

and haven't looked back. Cash /Debit card is the only way to go. My life was a nightmare when I carried credit card debt. So much nicer now being able to answer my telephone.

[bleedingheart]

70. The only time I "maxed" out a card was when my limit was $250

and I was buying a TV. I remember it because the guy I was dating at the time had a card for this same department store...but he didn't have a job..and he had $1000 of credit. (he was in school and was a full-time student)...I meanwhile was a student but I had a job...and so my boyfriend offered to buy it for me and I refused...

So I went to the credit dept and said..."if you can give him $1000 credit and he isn't employed...why do I only get $250"...they upped my credit to the amount of the TV...which was $295... I paid it off in two payments...and closed the card.

I was really peeved..

But that TV lasted a long time....and I sold it to a guy for his hunting camp for $50...

[Cobalt Violet]

71. Never.

But I'm not cutting them up since I can control myself. I'm facing some medical uncertainty and if I need to use them for survival I will.

[NewJeffCT]

72. when my ex-wife filed for divorce

she told me I was lucky she didn't max out all the credit cards. (she only came close...)

so, the answer is technically "no"

[Blue_Tires]

73. i've got heavy debt

ironically, i was in heavy debt before, dug myself completely out to a zero balance, then lost my job AND had to help my parents out of some financial/health problems...right back to square one


credit is the 21st century's form of indentured servitude

[MrSlayer]

74. Yeah. I maxed out to over 50 grand when I was younger.

Stupid. I declared bankruptcy when it got to the point where it took every single dollar from my paycheck to pay them off. They got theirs in interest alone so fuck em. I have one card now and I use it responsibly.

[Liberal In Texas]

75. We just paid off all of our credit card debt. I think this the first time in all my adult life

I have no cc debt. (Aside from putting a few things on during the month, then paying the full balance off each month.)

[Blue_In_AK]

77. I have only one credit card

issued by my credit union that I've had for years. I had it maxed out for a while several years ago when I was married to my addicted ex. I never used it on frivolities, just to stay afloat. These days, I keep it about mid-level. It's got a good interest rate that hasn't risen, and the monthly payment fits into my budget okay. I only use it for plane tickets and to contribute to DU.

I tear up all credit card offers upon receipt.

[Beausoir]

79. Of course I have. When I was in college and had to spend hundreds of dollars on text books.

Once, at the campus bookstore, my card was rejected. That was 25 years ago and I remember the panic and shame to this day.

[Thothmes]

81. Debt

Dumped all my cards years ago. Have one credit card. Do not carry a balance.

[Orsino]

82. Came close once...

...but fortunately paid 'em all off years ago. Now I don't use 'em at all.

[THUNDER HANDS]

83. i was standing on line at the train station the other day

behind this woman who was using a credit card to buy a $12 ticket to Penn Station.

She went through three credit cards before she found one that would go through.

When I used to work retail I saw tons of people who would have their cards declined, often on minor purchases. I really felt bad for them and tried to tell them as subtely as possible that they'd have to use another card.

[One Sweet World]

87. Get ready for fee increases

It's bad enough the irresponsible credit card policies and practices got us into this credit crunch in the first place, now card companies plan to raise fees and interest rates to recover the damages. It will now cost between $50 and $75 for balance transfers. Minimum payments are also on the rise. Pay very careful attention to your next statements.

As was pointed out, Visa and Mastercard hate merchants just as much as consumers. They've raised interchange fees too so they can continue to pay for rewards and marketing gimicks that target unsuspecting college students, for example.

Hopefully, congress can tackle these Unfair credit card fees this fall. We need more transparency so we all understand how and why fees and rates go up and down the way they do.
http://www.unfaircreditcardfees.com

[OPERATIONMINDCRIME]

88. One Need Not Max Out Their Card In Order To Have Excessive Credit.

And unfortunately, there are way too many americans with excessive credit card debt. Not sure when people will finally learn to spend responsibly.

[southpaw]

90. Hard Promise

Having very recently settled with a credit card company (they closed out an account for about half the remaining balance) I intend to NEVER again use a credit card.

[BlooInBloo]

91. No credit card = no credit debt.

[Broken_Hero]

92. Yeah, I've maxed out

three cards at the same time, and this was earlier this year...this year, has been a financial disaster for a good number of my inlaws...and my wife and I have been helping them out with $, while we leaned on CC's....

We just have to make it to February, and tax returns should knock them all out again...this past year, in Feb we were CC debt free for 1 day...before the finanical disaster of some of my inlaws came to our doorstep...but, we do what we can, and help those that we can.....