Skip to content

You'll never believe what the U.S. government is doing with $917 billion

Free World Class Education
FREE Catholic Classes

By Kenya Sinclair (CALIFORNIA NETWORK)
3/11/2016 (3 years ago)
Catholic Online (https://www.catholic.org)

'It is something we need to keep an eye on if borrowing continues to grow rapidly.'

How often do you swipe your credit card without considering your credit limit? When you don't have funds in your checking account, do you turn to credit cards to cover groceries, outings or bills? Have you considered what that credit card debt can do on a larger scale?

How much do YOU owe (Shutterstock)?

How much do YOU owe (Shutterstock)?

Highlights

By Kenya Sinclair (CALIFORNIA NETWORK)
Catholic Online (https://www.catholic.org)
3/11/2016 (3 years ago)

Published in Business & Economics

Keywords: Credit card, debt, money, economy, spending


LOS ANGELES, CA (Catholic Online) - The bottom line is that the United States owes $917 billion in credit card debt.

Every swipe of your card brings that number higher, which begins a cause-and-effect model that can result, in a worst-case-scenario, another recession.

According to Nerd Wallet, the average U.S. household owes $15,762 in credit card debt. Unlike student or car loans, credit cards tend to have high interest rates.

Nine percent of the average household income, which falls at $75,591, pays $6,658 in interest each year. 

So now that we see the numbers, what are we to do about our credit card debt?

"I've been there -credit card, student, personal and automobile debt," Sean McQuay, NerdWallet's resident credit card expert and former Visa strategy analyst stated.

"With tight budgeting, I've managed to pay off my credit card debt, but, like many Americans, I still carry other debt balances. But I'm working on it. Understanding debt and its underlying causes is key to our future victories over debt."

America owes $917 billion in credit card debt. How is it impacting the economy.

America owes $917 billion in credit card debt. How is it impacting the economy (Getty Images)?

Okay McQuay, so how do we do that?

MCQuay reported: "This sounds simple, but it's crucial: You need to know how much you make and what you spent it on. Then, figure out which expenses you can cut down on. Set up an automatic savings plan and pretend that that money doesn't exist.

"Ask yourself: Do I really still need my cable subscription now that I'm on Netflix? Do I still need to have a landline phone? Do I still need that car I hardly drive? There are basic things consumers at any income level can do to increase their wealth - even if that just means being able to pay off their credit card balances faster."

McQuay admitted, "People view credit card debt as a personal failing. It sends the signal that they are not able to manage finances, and finances, for better or worse, are the easiest way to gauge your success in life."

CNBC reported such a debt can lead to a recession, with CardHub CEO Odysseas Papadimitriou stating: "With 7 of the past 10 quarters reflecting year-over-year regression in consumer performance, evidence is mounting to support the notion that credit card users are reverting to pre-downturn bad habits." 

Scott Hoyt, senior director at Moody's Analytics, stated, "It is something we need to keep an eye on if borrowing continues to grow rapidly." He added that higher credit card debt would be similar to what happened in the recession, "when consumers became overly leveraged.

So save that money, budget and stick to your guns when it comes to avoiding credit card debt! No one likes to be underwater with their finances.

---


'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'


Copyright 2019 - Distributed by THE CALIFORNIA NETWORK


Comments


More Business & Economics

Profits & Politics over People, why California is paying more to sit in the dark Watch

Image of Millions of Californians will be impacted by blackouts today, including millions who cannot work or attend school in affected areas.

Californians pay a lot for electricity. According to one website, Californians pay the 8th highest rate in the nation, at an average of ... continue reading


Judgment reached in Knights of Columbus contract lawsuit Watch

Image of Knights of Columbus

A federal jury concluded Thursday that the Knights of Columbus breached a verbal contract with a technology company that hoped to become a ... continue reading



What does a just economy look like? One bishop reflects Watch

Image of Economy

The head of the U.S. bishops' Committee on Domestic Justice and Human Development called on Catholics to reflect this Labor Day on Catholic ... continue reading


Why organized labor is (still) a Catholic cause Watch

Image of Labor movement

At a time when labor unions are weak, Catholics still have a place in the labor movement, said a priest who emphasized the Church's ... continue reading


Businesses beware! The IRS will tax robots too Watch

Image of A popular meme suggests rising wages are the cause of automation, but in reality automation is inevitable.

Businesses looking to robots to automate labor might have to think again, the IRS wants a cut.  LOS ANGELES, CA (California Network) - ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

FREE Catholic Classes Pick a class, you can learn anything

Catholic Online Logo

Copyright 2019 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2019 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.

Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.