I am so grateful to my wife and her Draconian savings plans, resulting in my debt free retirement. But what does this news mean for the country?
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This is what has been keeping the economy afloat in spite of the Feds actions. I suspect we are going to see a lot of repossessions of property in the near future.
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A lot of individual bankruptcies.
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How much of that credit card debt is for lifestyle carry vs. essential stuff like food and/or medical or even rent?
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The article is referencing credit card debt. It is sad how much credit card debt can sneak up on an individual. Many people can look at the balance and have no idea how it got so high. They are not able to relate the balance to purchases made for large items, travel, medical expenses or other big-ticket items. Once the balance starts to grow, the interest on the balance makes it grow even more.
Credit card debt is unsecured debt. If that debt cannot be paid, then bankruptcy or debt forgiveness by the credit card company is about the only way to eliminate it. Too often if these steps are taken, the spending continues, and the situation recurs.
The first step is to stop spending. However, soaring prices have many people putting basic spending needs onto a credit card. They find that they are unable to pay off the entire bill, so they pay only the minimum. Eventually, the credit card is at the maximum credit limit. Then what?
Closely watching what is being spent is key. Don’t wait for the monthly statement. If that is done, reconciling transactions becomes too much of a chore and spotting fraudulent charges can be missed. I recommend looking at spending daily, or at least weekly, by utilizing a program that tracks your spending. Another option is to go to the credit card company’s website and look at what is being charged to the account. It is a way to determine if spending is on items that are necessary or if spending is on items that could be eliminated.
Excellent point!
Some things where spending could be reduced…
Don’t get that new phone.
Cut back on your phone plan. (Clark provides many ways to do this.)
Eliminate or cut back on streaming services.
Stop eating out.
Look at monthly charges that happen automatically. These can vary wildly from magazine subscriptions, services, donations to charities, theme park passes, subscriptions to cosmetics and food supplements, etc.
Consider repairing an item instead of replacing an item.
Pay for gas with cash if the station provides a discount for cash.
I am sure the Clarkies can suggest more ways to save.