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People Are MAXING OUT ALL FORMS OF CREDIT AT AN ALARMING RATE!
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- čas přidán 29. 11. 2023
- Credit card loans are currently the fastest growing form of debt for the average American at the moment. In October 2023 it went up 1.6% whereas the average for this time of year is 0.7%. Almost double! This spells disaster for people that are trying to keep up with the cost of living right now and simply cannot. This economy is sinking faster than the Titanic...
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Excessive consumption promises happiness… but never happens!!! The desire for more robs us of life!! SPEND LESS and BE HAPPY!!!
We are "hard wired" to want, hoard and consume everything we see. Contentment says, "let it go" and find a rewarding path to happiness and financial freedom....or just keep spending. Something is going to give.🥺
My mother has spent her entire live buying,..buying,...and buying more crap,......and she just turned 86,.....and is as miserable as she has always been.
@@Tonymanero1960 "OWEN!!!!!"
@@kathleenepugh9495 The economy depends on consumption.
I grew up in a neighborhood full of celebrities ,CEOs and other rich people and I think that rich people are happier than poor people.
Our own government doesn't even have good credit. These politicians aren't exactly role models lol
This is the irony. They've been getting away with this for 60+ years. How do you expect children to stay clean if their parents are drug addicts?
Well you could say that about violence too. I always thought that We tell kids to not bully and fight each other but our governments are the biggest bullies and are constantly at war blowing people into smitherines!
There day of reckoning will come...every politicians should come with a face and a financial budget for term in office on the ballot...this plan needs to be veted bye the best and brightest minds at Harverd....How can you ellect a representative and give blanck check.....the guy that proposes to fix sewers (thats urgent) will never win from the guy that promises a doubling of the minimum wage (even if this doubling would bancrupt the nation).Election is becoming who will spend the most... despite it beining unfunded liabilities,....that was all fine and dandy aslong as other nations where willing to fund it true bonds last bond auction no 1 showed up....i wonder why......and if the fed is the only 1 buying us bonds prepare for 1970 inflation next decades.
Exactly
Your government is technically lending themselves their own money.
In these uncertain times, it's more important than ever to have a solid understanding of how to manage your finances, invest wisely and navigate economic downturns. But my primary concern is how to grow my reserve of $240k which has been sitting duck since forever with zero to no gains, sure I'm all in on the long term game, but with my savings are lying waste to inflation and my portfolio losing gains everyday, I need a remedy.
If you need advice, consider speaking with a financial advisor. Don't get me wrong, you can do it on your own, but financial advisors have a lot more knowledge and expertise in this area.
you are completely right, Advisors have information and paths that are not disclosed to the public.. I profited $560k in 2022 under the tutelage of my Fiduciary-counselor. Am I selling? Absolutely not.. I am going to sit back and observe how this all plays out.
That's impressive! I could really use the expertise of this manager for my dwindling portfolio. Who’s the professional guiding you?
The decision on when to pick an advisor is a very personal one. I take guidance from ‘ Natalie Noel burns ‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
Great share! inputted ladys full name on my browser, at once spotted her site top, she looks great at first glance. will wait to hear back from her or her team
Not paying your bills is a disaster. Paying with credit cards is a double disaster.
My credit card balances are at zero. Been working on building my credit since 1990. I buy necessary items and pay them off before any interest can be charged. I am what is known in the industry as a Deadbeat!
so true many don’t realize banks & govt are now roaring lion predators looking for a middle class to devour next. Or what’s left of the middle.
Me too. I love it when those CC company CEOs complain about us freeloaders!
They usually complain when you only make the minimum payment
Same here. I get cards with zero interest for 15-18 months and use them for only necessities and pay them off before the high interest takes effect. Than I don't use them at all unless I can pay it off each billing period.
This credit card over use makes sense when you realize that our currency is now monopoly money. The only reason it has any value is because we are the cleanest dirty shirt in the hamper but I don’t know how much longer that’s gonna last. Most people know that it is unsecured debt. Look at all the comments about people who declared bankruptcy and keep doing it over and over again, and there seems to be very little consequence. I’m starting to feel like a schmuck for being responsible with my money.
I realized the monopoly money scam 15 years ago, but I was called a "conspiracy nut"....
Partly credit card lenders can compensate for defaults from their enomous margins - and they don't give up easily.
Bankruptcies ruin credit scores and all that comes with it (sometimes even prospects if finding new employment).
You may feel like a schmuck for meeting your obligations - but would you really rather swap places with those going through repeated bankruptcies?
@lisalove8526 - You may feel like a schmuck for being responsible with money, but hopefully you sleep better because you’re doing the right thing.
The debt is only "alarming" if you plan on paying it back.
Facts
Yeah declare bankruptcy, problem solved.
This credit problem was by design. Raise the interest rates on credit cards and mortgages, raise the price of gas, raise the price of little luxuries, raise the price of groceries, restaurants, well you get the idea?!
However, those that run the country and banks obviously don't have a clue how everyday people live.
Now, include those that make over 100k a year. If that isn't a sign, I don't know what is.
It's by design to fail. It's a shame. They knew ahead of time and raised the interest rates to cover the student loans that were forgiven. Nothing is free. Stealing from Peter to pay for, well, you all know.
What good is a high credit score if you can't consolidate at lower rates and debt to ratio is a few points over?
Who could help that surgery expenses were not covered by insurance because it was written up incorrectly?
Yeah, yeah, yeah, give a sermon about overspending when it's happening to so many.
No, something is wrong with the powers that be.
Great video, as usual, with great scenery but could have done without the kitty meowing. Lol
@@nach335it’s not that easy anymore
I had a coworker do that 3 times. Literally millions in debt and file bankruptcy...over and over again.
I remember the 70s. The banks wouldn't even talk to you about a home loan unless your housing-related expenses - mortgage, insurance, property taxes, etc. - were less than 28% of your VERIFIED income. When they started treating home loans like hot-potatoes and selling them off to retirement funds as soon as they were signed the banks got a lot more lenient.
This was a problem entirely created by the government. FHA and the rest
If you have to use a credit card to pay bills, then you are screwed. That does not apply if you pay off your credit cards in full each month.
Or the buy now, pay later plans, that so many retailers offer. I just bought an air fryer on Amazon for $195. As I was checking out, Amazon shopped two different plans where I could buy the air fryer on credit. And, I'm thinking, that if I had to finance $195 to buy an air fryer, I shouldn't be buying an air fryer. We use our debit cards for everything. The three credit cards we do have, all with zero balance, we keep locked up in a closet. I have a very rich brother, who owns a construction company, who uses credit cards for everything, even buying expensive pieces of construction equipment, that he pays off immediately to get the points, (which he uses to buy airline tickets to travel to his vacation home in Alaska). But, he is the most financially disciplined person I have ever know. I know a lot more people, who had that plan, who ended up not paying the cards off and eventually maxing them all out.
Whenever possible I’ll go for interest free instalments. My cash sits in an instant access high yield account, only drawing down money when bills are due. Credit cards are paid in full each month. Takes a bit of managing but totally worth it.
I’m living proof. I had to learn to pay each balance due and owing monthly
Sometimes it’s not all bad spending habits, some people are self employed and business slows down to a point where they can no longer afford to pay their bills. A lot of folks would rather save their homes rather than pay their other bills.
I hate the thought of people ending up on the street. I hope it doesn't come to that.
Unfortunately it’s been happening more since 2020 with Covid
It already has.
People have found tricky ways to stay off the streets in my town such as renting someone’s backyard to park an RV to live in. So many RVs and vans in yards now!
@@DeborahE7 you are so right!
@@DeborahE7 you need to move if that’s what you see
Accurate statement: "It's far worse than you actually think it is." Thank you Michael for your reports!
I grew up in Europe (I am Swiss) and we just never got into that rut ... save first and than buy ! Yes, I have 2 credit cards, pay in full every month and have no car loan, only a small mortgage left and if I don't have the savings, I don't do it ... btw fico score is 803 ... I only wish the US kids get educated starting in kindergarten about fiscal responsibility ...
They don't want educated kids here they want dependent adults.
Dependency on your handlers equals control of the population.
I’m American, home,2 vehicles & a large tract of land separate from the home, zero debt. My adult children are just like me. Children learn from their parents & too many of them teach them by the way they live. The kids grow up thinking debt is just something you always have to live a certain lifestyle, it’s sad.
@@wumpkinthat is very true of our kids that have parents that do this.
Some parents can't pass this on because they were never taught. That is where the schools would come in very handy, but they refuse to teach simple economics and financial responsibility.
I truly believe this is neglected because the knowledge would create too many independent citizens.
@@JetJ321 I agree
I think it comes from a world view that the future is bright no matter what so people spend what they make instead to saving money. After 2008 and again 2020 the savings rate rises dramatically but then over a few years it all gets spent. The only solution I think is education, and parents teaching their kids.
if you charge on a credit card and dont pay it in full every month, who should you blame when your bill gets out of control . One person. YOU
The Grinch says no credit for Christmas.... Cash only
Good!
Love this show. I watch daily, but I would love to hear one, One, positive story. The negativity can be exhausting.
Lol
Sometimes I take time off from channels like this, but…. it’s news actually, that I can’t find anywhere else.
I live in central North Carolina and things here seem much more positive than what Michael is describing in Florida. Most folks around me have decent jobs, drive reasonably nice cars, and maintain a reasonably good standard of living. I also see a lot of new residential and commercial construction including some new multi-billion dollar mega projects going up. The biggest difference between what I see here and what Michael describes is the high cost of housing in Florida. Here you can get a nice 2,500 sqft house in a gated community for $300k to $450k. A similar type house in Florida I imagine would cost well over a million dollars. With that in mind I can see why a lot of folks in Florida are running into hard times and thinking of moving to areas with a lower cost of living.
Just go out and talk to people who think it's still hunky dory. Lots of them!
@@MudBuddy55Why would you move to NC to live in a gated community? lol
I've said this before, but will say it again.
While I'm not in the market, especially till things turn around significantly, for a house I like that Michael is at least trying to tell people what is the best thing they can do right now in regards to buying a new home. Be patient, save your money for now.
I personally am practicing for what I feel is coming by literally trying to live below my means, not just within my means, as I think the next 2-3 years (at the least!) is going to get real ugly.
Michael is right. I will be waiting for the inventory glut to happen, it is inevitable. That's when I am going to buy my dream house in FL!
1st = "the only winning move, is not to play" .. the corporations run this country. Minimize your expenses, stop giving them your money. You'll be better off living abroad, cheaper, safer, better quality of life. U.S. citizens can travel visa free to over 180 countries - the U.S. gives lots of money to many countries (in turn benefiting corporations) on the back of taxed income payers .. it's overdue for us to benefit from it
@@randymillhouse791 Do you think your Dollars will be worth something by then? They won't even pay for your retirement in South America.
@@johnkla7866 Ok, show me the math. Do you have any idea what my situation is? NOPE! But just throw out a comment because that is what Americans do. No me importa, come torta.
@@randymillhouse791 Look who is generalizing. I don't care about your situation I didn't reply because of your situation. Es mejor callar que con tontos hablar.
@@johnkla7866 Con palabras necias, oidos sordos.
Name one country I can travel to without a passport? We used to be able to go to Canada, Mexico and Bahamas without one but now they require it.
And yet GDP is up and the DOW is almost back at it’s all time high…..🤔
yet our debt to gdp ratio is approaching Greece level.
Just wait. Crash is due and it's coming.
I always use buy now pay later offers. Use other people's money. Only works when you pay it off the balance before the time runs out.
You use other peoples money to pocket yield spreads. Not to pay $40 over 30 days…
if everyone defaults on anything the pool of people that will qualify for a home loan will diminish greatly
That's fine. More homes for me to buy😊
That is absolutely true. This will diminish the number of credit qualified buyers by millions. There should be different grades of bankruptcies though. If a family has had a spotless credit record..buys a home and 5 years later the father loses his job..then this is not the same as a family that perpetually racks up credit card debt and skips out on car payments and rent. The first group should be eligible for credit literally as soon as the father is again gainfully employed and with the company for a year. The second group deserves a seven year credit freeze…at least in my opinion.
Won't matter, even the ones who were responsible and qualify will be rejected because they want us all homeless so they can force us into their little $2500 per month stack n pack boxes in their planned 15 minute open air concentration camps with a tiny basic income and digital currency that expires if you don't use it (so you can't save or leave an inheritance to your children). Why you think all these apartment complexes are going up everywhere?
Exactly why realtors have had the worst few years selling houses.. No one can afford them.
The economy is truly on fumes. And the (necessary) interest rate hikes to tame inflation are going to surface the weaknesses in the economy. What is truly more expensive than people realize today is going out all the time to eat and going out to drink.
Raising interest rates just made more poor people. The government shouldn't play with the economy.
@@billy3011 Raising interest rates did not make people poor. High inflation and spending money you don't have on things you don't need to impress people you don't like made people poor. The people you are trying to impress already know you are deep in debt and poor. Most have a net worth less than $0.00.
Federal reserve and reckless fiscal spending pulled everything forward.
easy credit and low interest rates did that@@billy3011
the problem is that rate hikes only affect 1/2 the GDP - the private half. The government spending is still going UP, not down. To cut GDP by 10%, they have to curtail YOUR spending by 20%. I don't know that many people that have that much headroom in their budget.
I finally paid off my 40k cc debt this week.
Just saw a foreclosure pop up today, and the bank relisted it for more than the last buyer paid. Imagine how many houses will sit empty until they are finally low enough to afford, then they end up having maintenance issues, or mold because they didn't keep the A/C systems running.
It’s going to be ugly. Really. Those “abandoned homes,” are going to become squatters living places. There will not be enough security to handle it. Remember I told you this now.
"They spend the money they don't have on things they don't need to impress people they don't know."
I predict a campaign promise made in 2024 will be: "I will have all your credit card debt be forgiven" and people will believe it.
MAGA 🤡
I thought the same thing…the sheeple will fall for it too
And a check for $15,000 for anyone not in any debt.
or Trump will just make CARES act 2 electric boogaloo
Yep. But there will be conditions...such as accepting a digital currency and a "basic" income. No farking thanks.
Really appreciate our host for these important segments. You teach us a lot.
Not really he's just rambling on about the same old things that everyone knows.
Houses are going below 2019. Certain collectibles like high end vehicles will go below 2019. Your utilities, insurance, food all the things you need won't go down but continue to rise. My health insurance just went up another 50 a month next year.
Really, it didn’t go up $50 as much as the dollars when down!
I wish you could do a video on the realities of bankruptcy today... see my comments below; I think the bankruptcy proceedings have lightened-up enough on citizens that it creates only a temporary inconvenience; it will be viewed as an inevitable necessity to survive in 2024 America
If they wipe out credit card debt im gonna be so mad for being responsible! 😂
We have 10 payments left on our house a little over 2 years left on our car payment and we are done financing anything we are in our late 50s and done after this we have 1 credit card that we are paying off and not using if we can't afford it with our pay we aren't buying it
Part of it is verything became so much more expensive.
….2 of my 4 tenants haven’t paid rent since September. One of them drives a Land Rover.
😮
That's not right
Insane. Wonder how that one would like LIVING in the Land Rover?
You also need to take into account that in the 80’s people didn’t really have a lot of credit card bills. People used to do layaway.
I remember lay-sways. They made it easy to pay for items without going into debt. Pay $2 weekly and you could eventually take the items home. I say bring back lay-away but then the credit card companies would go broke!
I think it’s going to get worse before it gets better. I have a friend whose husband has been unemployed for about 7 months. They just cashed out a 401k she had from a previous employer in order to make it for a few more months. They both have part-time jobs until he secures another full-time job. It’s getting rough out there with inflation and people NOT prepared for hard times. Get prepared people. Pay off debt and start stashing some cash. ❤️
It’s impossible to be unemployed for seven months
For them, it's already beyond 'Garden Variety' recession timeframe.
So the husband has been unemployed for seven months , but now has a part-time job? He’s no longer unemployed, UNDERemployed is more like it.
Can’t help but wonder how many running up c.c. debt have a car newer than 5 years, the latest cellphone, streaming service subscriptions they don’t use, the habit of dining out more than twice a week, high school or college-age children who are not working part time, etc. LBYM is THE KEY to financial freedom.
I could never go into Debt and the reason I am in the position I am in is because decades ago I saved money and planned ahead.
American advertising enthralls people. The ignorant are preyed upon and fold up like cheap suits.
same here in Australia even more so now with buy now pay later..It is Criminal.@@randymillhouse791
Our local credit union has a couple of dozen repo'd cars in their lot. Usually, they only have two or three.
Also heard unemployment ticked upfirst time in 2 yrson Bloomberg radio Washington
A couple dozen vs 2 or 3 . . . terrible.
Nobody runs a balance on Amex because the payment for their cards is actually due at the end of the month. It would be interesting to see how many subscribers they lose over the next few months now that the platinum card costs $700 per year. That should be a great indicator of economic health. Just getting my popcorn ready for 2024 now.
Almost all AMEX cards work just like VISA & MasterCard now. The original AMEX 1980’s plastic was a convenience card for business travelers and international travelers (who used to buy American Express travelers checks at any bank or savings & loan) that way they didn’t have to go through large foreign banks to exchange their dollars, plus travelers checks were insured, in case they were stolen.
AMEX went plastic option about the time VISA entered the credit card game with MasterCharge, that changed it’s name to MasterCard. In the 1990’s AMEX made deals with banks & upscale retail for higher tier with the same terms of VISA & MasterCard, and it did still offer the original payoff each month on their issued highest tiers. And that’s the history of AMEX.
Imagine being a credit card collector at GC Services hunting down a yacht bought on a 1980’s AMEX card that sailed away from Miami and never returned.🤑 True story!Not sure if they ever caught up with it, but it was last seen in the South Pacific in 1986.
Both my husband and myself each have the Amex Platinum card. Yes, the annual fee of $695 is crazy pants but the card pays for itself and more with the amazing benefits. It’s a luxury travel card and we didn’t get them until we were traveling at least a few times a year. It’s designed for people already planning on spending at least $5,000 on travel expenses every year. Especially if you have to travel for work it’s a sneaky way to earn 5% cash back on your airfare and hotel and then your employer pays you back for the full amount you spent. You keep the cash back. $$$
@justthink5854 You forgot the $240 digital credit, $200 Uber credit, $100 Saks credit, $189 Clear credit, $150 TSA credit, free airport lounge access with free food and drinks, $200 hotel credit, $200 airline credit, and free hotel upgrades.
I live in a triplex and the apartment in the middle WAS on the rental market for what I am paying. I knew it would come down and it did, lower than when I first started renting 2 1/2 years ago. The owners were pandemic buyers, so I have no sympathy for them. But with the new "screen shot" of their new rental rate, I will be letting the owner know what MY new rental rate is.
Yeah. Landlords try to be sneaky.
Please let us know how that works out.
So, I did get a response from the rental manager. He says they look at market data (at the time of lease renewal) and advise the owner accordingly. This guy doesn't know that I've had a real estate license in Florida since 1990. So some of his information is a little condescending for me. BUT a $250 per month decrease in just 4 months from when I was asked to go up another $100 per month is absolutely extreme. I've had to have "the talk" with sellers about dropping their price. So my suggestion to the management was to bring units A & C (C is me) to a median rate that makes all 3 tenants happy and the owner too! Oh no, that's not how it works. I get fleesed for the next 6 months until July, then the guy who brings them a certified check for the full amount on the 1st of the month moves out. Makes sense? Not really. So that's where it stands because real estate people are just robots and want money.
People are not spending money, they are incurring debt. This creates a burn rate and will induce a collapse when the unpaid bills start to cause bankruptcies. Creditors who don't get paid will collapse and follow their debtors into bankruptcy, and then all the vendors to the creditors lay off workers. Those workers default, get foreclosed on and wind up trying to stave off the wolves with a Chapter 13. When that fails, they convert to a Chapter 7 and nobody wins. "We're running off the rails on a crazy train". At 65 I have seen it all before. We have learned nothing.
I like your comment, and can see this scenario playing out. Maybe not for the one person seen at the grocery store doing some specific behavior, or anybody in your small group of friends who are financially okay, or for any other singular examples against what the big picture looks like. But it is happening to people. These economic times are bleak, based on data. It’s our choice to do with that information what we will.
For me, now’s the time to prioritize saving and stability.
Yep. 2008 repeating. I am 63 now unfortunately on SSDI, had to quit my airline career, but always put some away. I count my blessings, as I can survive, where hordes my age, will be living in vans down by the river.
It would be interesting to interview some of these people with maxed credit and get their perspective as what got them there. Also ask what they think will happen..if they believe they can just spend away, then declare bankruptcy; most persons I know who had recent bankruptcy got to keep everything, furniture, house, cars; they carried bad credit, cash only transactions, for 12 mos, then at 18 mos, they were actually receiving invitations from credit card companies to once again carry credit cards; although the bankruptcy carries on a credit report x 7 years, it affects a person only 12-18 mos. Fellow coworkers who had cars reposessed in the parking lot only had repos because they did not pay the car loan for 3 mos; persons who declared bankruptcy got to keep their cars. Other coworkers were near bankruptcy, knew it, but took-on $20+K house renovations; they were not held accountable for the additional spending, and got to stay in the house. So bankruptcy is the way to go; results in only shortterm hardship
I did not know this. It sounds criminal to me.
Bankruptcy is corruption 101
Just watch Caleb Hammer or Dave Ramsay, that will show you where these people put their money.
I'm pretty sure we're all doomed except for the filthy rich.
so true many don’t realize banks & govt are now roaring lion predators looking for a middle class to devour next. Or what’s left of the middle.
Basically unfortunately
Speak for yourself
It’s not good to end up homeless. I feel bad for the kids. I grew up poor and know what that is like. So I feel bad for the kids more than anyone else.
Yeah I worked since my first paper route at 12 years old. My dad who was not poor, told me when i was young, you want something? Work and save for it. In college of which i paid all, i had one week in my checking account $.65 as in cents. Lol...lived on top ramen, until my high school umpiring checks started to roll in.
Now retired and 75% of my money in fixed income. Still occassionally dine on ramen.....just for the good ole times sake.
@@wa210 Good for you!! Congrats!!
Chapter 7 is definitely in my future, ...its the American way
so true many don’t realize banks & govt are now roaring lion predators looking for a middle class to devour next. Or what’s left of the middle.
I was always raised to understand that you don't buy things you can't afford. You work for what you want and you pay your bills. That is the way I live. I was close to bankruptcy probably 3 times but I always found a way to avoid it. Always works. The economy goes up and the economy goes down. Deal with it. Quit taking the easy way out.
Yes.
Live POOR! Even if you take in $200+K per year. SAVE as if your life depends on it because it does.
Scary. Financial margins slacked out. Goodness forbid unemployment goes up significantly next year.
I don't know where they get the numbers from but my husband is a plumber and businesses down way down is very slow
They make up the numbers.
Contractor here. Yup, slow. Cuz many reasons. Also cheap cheap people. What u for 10.00hour. or free..... Services. Free.... Hahaha 😂😅🤣😆🤣
I feel lucky. I haven't used a credit card in 3 years. And I only make 60,000 a year and supporting a family of 5
The road to financial hell is paved with credit cards…
Wrong. Only for people that don’t know how to responsibly use credit. That’s like saying that everyone who steps into a grocery store will get fat.
Credit cards are not for people struggling financially. If you have a credit card with a $10,000 limit you better always keep $10,000 minimum in the bank. It's perfectly fine to use the card as much as you want as long as you pay the entire balance of every time the bill is due.😊
Actually it’s student loans. Student loans are the only loans that can’t be erased from bankruptcy 😂
Of course we are. Our own government is drowning in debt. Eventually it’s all going to be reconciled somehow, if US debt to GDP is 130% it feels foolish to be debt free as an individual, we’re all going to be saddled with responsibility for bailing the govt out one way or another.
Nothing is going to force there people to stop spending- debt has to increase exponentially to support all the idle rich.
How am I doing so much better than people who make 100k a year? I am using 1-3% of my credit and thats literally what we normally spend every month anyway. I pay it off in full and bank the cashback.
Sorry, the trap has been sprung. You will fail, and even if you don't, the bank is counting on many others to fail.
@@randymillhouse791so true many don’t realize banks & govt are now roaring lion predators looking for a middle class to devour next. Or what’s left of the middle.
@@randymillhouse791 Ive been doing this for years and have a 790 FICO. Vantage is over 805. I have a family to take care of. I dont pretend Im rich.
My kid asked me if economics was a good class to take in HS, literally 2 days ago. I said sure it could be the most important class he takes. Even though colleges don't care about that vs physics, math, sciences if your focus is engineering. I then told him basically, 'If you avoid spend money you don't have, you'll be fine.'.
Michael, thank you for bearing down on this subject. A lot of people have no idea what is coming
im glad I dont have family or kids this time of year, people must feel immense pressure and guilt to buy gifts and provide a happy cheerful abundant time, its icing on the broken cake
I am just glad I can say no and bake tasty food.
My children and grandchildren ARE what makes Christmas! Love to make food and shop for my loved ones!❤️
Time together, memories, love the holidays 🌲
Holidays don’t have to be expensive. I buy my grandkids things on sale during the year. I also watch for sales on food and put items in my freezer, ham/turkey/fresh cranberries and other holiday goodies.I grow several vegetables during summer that become a part of my holiday dinner like sweet potatoes, onions, turnip greens. All my veggies are grown in large pots so no back breaking gardening. Finally I save the ends from loafs of bread for a month prior to holidays and use for stuffing. There’s lots of ways to save on holiday gifts and food items but we live in a ready made society so this type of planning is unpopular. I regularly post to Facebook food pantry’s and social support organizations that provide free food and toys for Christmas. There’s ways to have a wonderful holiday without spending oodles of money.
Sort of crazy how I’m actually spending less and being more financially responsible than I was before inflation. I’m paying off all my cards the second transactions post and never reaching my max lol.
Congratulations and keep up the good work. Don’t pay the banksters $XX each month, pay ourselves
Amex Black Card limit????
There is no spending limit with the Amex Black Card. However, balances must be paid off in full every month.
Imagine if everyone did the opposite and focused on paying back debt and avoiding new ones…. What a world this would be
That's funny I'm in the least debt I've been in years and years. I'm financially doing better than I ever have in my life after moving to Florida 3 years ago. Being somewhere that doesn't make you miserable 6 or 8 months a year changes your life.
😀
This debt buildup is a precursor to chapter 7 bankruptcy.
The buy now pay later is lenders exploiting a person's unrealistic outlook of their finances. . No one who uses this type of credit believes they'll be one of those who miss payments and rack up fees.
When you think you gotta have a $50,000 car when you know a good running car can be found for $5000. Landlords screen prospective renters and there's no way I'm gonna live in a ratty apartment. And taxpayers are sick of carrying lazy losers and deadbeats.
I don't think you can get a good car for 5k anymore. More like 10k. But yeah you don't need a massive car payment it's dumb(says the guy with a $3k payment 😂)
I know many hard working kids working 2 jobs just to afford rent and food with little time for anything else. You need to wake up fast. You are giving boomers a bad name.
@@mg-by7uugot my 2005 Lexus RX330.suv for $1000. 325000 miles but it runs like a champ.
I would definitely rather drive a less exciting (flashy expensive) car and live in a nicer apartment than to have too much of my monthly income going to a car payment and have to live with roommates as a result.
The figures he cites show just a small increase in delinquencies.
Please tell us your location, this seem to be a maze of bridges. I think personal finance should be a class in high school.
hi mike ... good walk and talk
Michael. you helped me save money today. There is a cussing tip jar in our house that gets fed a dollar every time someone lets fly a cuss word. Today's video had no mention of how nice the weather is down there and so the jar didn't get fed, thank you. However, the other day you cost me 27 bucks in one video.
I worked with an engineer that had to live off credit cards and had to file bankruptcy. I remember him saying he didn't play the game right and could have spent even more money than he did. So I expect many are expecting to file bankruptcy. I didn't hurt him much, he was able to get an engineering job, later work for a startup and make RSU money. His cost of borrowing was higher for a few years but once his bank account went to 6 digits he was fine. I think credit cards are going to reach a point where it's not profitable but I may be wrong about that.
Bankruptcy is now impossible for ch 7 the best one in hcol areas as the means test Biden implemented over Warren in 2005 makes the lowest household incomes not qualify. Like food stamps numbers and welfare at 1960’s numbers. 70 years outdated…
I have been hearing similar sentiments. People are charging up their cards like crazy saying "I'm just going to file bankruptcy anyway" or the expect for Biden bucks. I don't think they know that in bankruptcy court running up cards then filing is considered malicious intent and you can usually not get that debt expunged.
@@redtiger7268the debt falls off your credit report in 7 years anyways so
I guess your psychopathic engineer would be doing smash and grabs if he didn't make much money.
Believe it or not he was a Christian :). He worked on his own and made good money for years but almost overnight business dried up because manufacturing went overseas. He went back to working for a startup where we met and he just wouldn't get any work done and finally they fired him. It was right before a bad recession. He had a wife and kids and he just gamed the system. Learned it from his wife (she was a Christian also). She was hot though. You can bet when he cashed in RSU's he didn't pay back the credit card companies. I really hate people that game the system or sue innocent people because "they can get away with it". @@chrislastnam6822
Florida is overrrated now onwards. Leave there as soon as possible. Move it!
I’m completely against paying any “CC” interest and tend to pay off within two to three weeks. We’ve decided to try something different this year by paying off all of our credit card debt after Thanksgiving; and set them aside by using cash/gift cards instead. We usually charge up multiple cards for Christmas and then pay them off by mid-January.
In Europe basically nobody uses credit cards. You either got the money, or you don't. 😅
It's insane to pay CC interest. I always auto-pay my balance on the due date. I do enjoy the 2% or more cash back that CC's offer.
I understand there are people out the less fortunate; but many are simply not financially disciplined and live above their means.
@@tomv7986 a lot of people use credit cards for all different reasons. One thing is buyer protection when I went to France my number got ripped for $24,000. Good thing that was a credit card.
That how we live! If I can't pay cash either I don't need it or I need to save for it. I'm just now realizing what a novel idea that is for many people.
We're retired, and our primary financial tenet, is that we don't borrow money for anything. If we can't pay for it out of our bank account, we don't get it.
22,000,000 in Florida and your the only one outside...Florida is a disgusting place where they sit inside with the AirConditioner running...looking out the
window...
💯
Historically people default on their house before their car. You can live in your car, but you can’t drive your house to work
Average interest rate on bank-issued credit cards is nearly 23%. If you carry credit card debt, you’re losing at the game of personal finance.
I will tell you, years ago my Husband and I used to pay for gifts on our credit card. Then we would be paying for Christmas clear to June of the following year. It was awful. So instead years and years ago we started setting aside a certain amount like a bill, and stuck to it. That year we charged NOTHING to the credit card. The freedom from the debt hanging over our head was unreal. Thing is of course you have to increase said amount just due to the costs going up.
Credit management has to be learned. I’m older and have been there waiting for my income to catch up with my spending habits. Good luck!
As usual, excellence personified! Thank you for your analysis 😊
A lot of times the folks having it hard financially are the ones with one or two dogs and they smoke cigarettes. It always amazes me what people make a priority in their life.
I resemble that remark!
And drink alcohol.
some of them drive Porsche or BMW.
Looks like you’re pretty nosy
@@ihave35cents95 , not really. I just have noticed it with family members.
25 years ago, there were many shabby, rusted old cars on the road. I don’t see those anymore. Even 16 years old teenagers are driving a great car.
Yes,and $1.10 /hour was worth more than the $18/hour is now
I love it. The higher the credit card debt the more I get back in credit card cash back. Of course I pay my bill off each month.
The higher the interest rates, the more that I get on my risk free savings.
What a great country.
You do know that companies raise prices to recover the credit card companies and their exorbitant fees. You are being paid back not even half of what these companies charge the private sector for each transaction. It's a complete sham to get you hooked up to cashless.
I can't believe they pay me to use their cards, 2,3,5,%. My first credit card was a Sears card in 1978. Visa, M.C once charged $150 a year. Plus fraud protection.
@@johnkla7866Agree. I recently put a roof on my house. I could have charged it on my AMX for an additional 2.9% processing fee to the roofing company. My cash back from AMX on the transaction would have only been 1/3 the cost of the fee. So I paid cash and still saved $$ because of the discount the roofer gave me for paying cash.
TY for your intelligent analysis.
Thanks Mitch!
Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.
ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation
Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.
Would it be okay if I asked you to recommend this specific advisor or company that you used their services? Seems you've figured it all out.
it's best you do your due diligence, I have my portfolio overseen by “JULIE ANNE HOOVER” and her qualifications speak for itself. Most likely, the internet is where to find basic info, she has a noticeable page for consulting.
Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Julie .
Why wouldn't people max out credit cards, our government has set the example. Our national credit card has been overextended for a long time.
You are 100% spot on Mike really enjoy your walks thank you
Thank you, Michael, for bringing beautiful Florida to us. It's good to see other areas.
Credit card debt going up 15 billion dollars a month. 401k hardship loans up 17% over last yr. Inflation is killing middle class people. With 7.8 trillion dollars on the Fed balance sheet we can not take much more. Consumers are running out of options. 😢
Yea and let us not forget the people who "buy" something on credit use it and return the item before the bill is due. I know way too many that operate this way.
I miss the real dollar store.
Another beautiful walk🎉🎉🎉, thank you!!
“Don’t live above your means…”gross income” isn’t the same as “net income”!!!!
It should be if not for govt theft. They steal our hard earned money via taxation and award it to deadbeats and baby mamas, getting all the credit for it when it really came from the people these deadbeats are brainwashed to hate.
It costs $$$$ to file bankruptcy….and the lawyer doesn’t accept credit cards for payment.
That's why I don't see how these people can be filing bankruptcy three times! What do they do, save money ONLY for the bankruptcy attorney?
It's not that expensive... Someone I know paid 2k. Also they offer payment plans.
I think the banks need to pull more cards from folk who won't pay enough of the balance. The best habit, of course, is to pay the total balance any month where there's a balance to be paid. I am afraid of debt.
People do not care about debt all they do is declare bankruptcy and also remember all the houses they bought without even having a job and the end result is that they ( the bandits ) got handsomely rewarded , nobody went to prison.
It all falls onto the backs of the hardworking, financially responsible tax payers. This system is pure evil.
Great video, Mike! Man, those numbers you were sharing are Beyond Scary! So happy to say that I live within my means, which equals…. No debt!! Have a budget and stick to it. I will NEVER “Buy Now, Pay Later.”
Yes, it was SCARY realizing people are living on credit cards and that that credit limit is going to be maxed out someday. Very frightening spot to be in. Best to live below your means and not try to have everything your friends/neighbors have.
The inner void that excessive spenders experience can only be filled w/ something that "stuff" can never fill.
Authentic love from our Creator is the only imprint the inner void will match. My prayer for the world is that we find and embrace the love that has been freely given and this is the season to pause and meditate on what this season is all about. It's never been about stuff......it's always been about Love.
You know what the crazy thing is...(first of all, that should never have happened, those responsible for the loose standards should be held accountable.) ...the more people bought what they could not afford and the more people that did it...up went the demand and it cost an exponentially worse amount. Just like the housing market, the real estate industry knew that was wrong...like a fire feeding itself.
They should have never lowered interest rates of zero in 2019
The people complain when they don’t get approval for loans? Then the complain when it’s to easy? Song quote; “it’s hard to be right when everyone is wrong”.
30% credit cards are freaking me out man... its NOT sustainable!
This is great! About time that these self-entitled people who live beyond their means get what's coming to them! Bring back Debtor's Prison!
Right save up cash and hard assets
Debtor prisons never left heard of a family court? CC companies loan NOTHING your signature area the CREDITS.
Wow!
I dont think most of those people have any intention of paying it back.
This is scary, oh my gosh if my credit card is NOT zero'ed my anxiety SPIKES