how many people are currently in debt

[disneysteve]

Originally Posted by Exile

Points? Cash back? Who needs them? When you don't use plastic, the items that you once thought are must-haves often become non-essentials. And you wind up with a 100% discount by not purchasing them in the first place.

Originally Posted by ActYourWage

Econ 101 -- There's no such thing as a free lunch.

I use my CC to make lots of purchases that I would be making no matter what. For example, I pay the landline phone, cell phone, auto insurance, gas, alarm fee, internet service, cable, Netflix, auto service, auto registration, professional licenses, medical and dental expenses, newspaper and magazine subscriptions and many other bills that would be the exact same amount regardless of how I paid the bills.

By paying with a credit card, I don't have to write a dozen or more checks each month or do a slew of individual online banking transactions. I do one transaction to pay the CC bill and that settles multiple merchant accounts. Plus, I get 1-5% back in rewards. Sounds like a free lunch to me.

[Inkstain82]

It's free for you

They just that for every customer like you, they'll get five who thought they'd be like you but get sucked into debt.

[Exile]

Originally Posted by Inkstain82

It's free for you

They just that for every customer like you, they'll get five who thought they'd be like you but get sucked into debt.

I couldn't have said it better.

[Exile]

Originally Posted by lovcom

You need to tune in! ;-)

The reason I speak of a state-side relative is so that if your state-sdie purchase goes south, you have recourse because the store you purchased the product at is an American store and they will be forced to issue a refund....and of course your card works all over the world! But you yourself said that stores in the Philipines don't exactly work the same way stores do in the USA....here you can get your money back if you use a card. Of course even in the USA some stores will post a sign "all sales final" but even then, if one uses a credit card, they can still get the refund and often times it is out of the stores hands...AMEX, VISA, MC will force the refund regardless....I've been there a few times.

But why would I even consider putting a Stateside connection into the inconvenience of shopping for and then sending product(s) to me? Then there are shipping charges, time consuming cargo transit delays, and CUSTOMS duties to contend with. The latter fees alone can be outrageous, often more than the value of the merchandise itself.

So just who needs to tune in?

[disneysteve]

Originally Posted by Exile

Because I live outside the U.S. a big disincentive for me to use them is that I would get whacked with a 3% currency conversion fee by my card issuer which would more than offset my rewards points.

I just read an article explaining how Americans can get hit with the 3% conversion fee even when making a charge here in the US. It happens in the travel industry. If I go to a US travel agent and purchase a travel package in US dollars for travel outside of the US, the charge might actually be processed through a non-US provider, thus triggering the conversion fee. What a rip off!

[ActYourWage]

Originally Posted by disneysteve

Sounds like a free lunch to me.

No, that is not correct. There is a price. The people who are up to their eyeballs in CC debt pay for your lunch....that's how these CC companies are able to offfer you "rewards".

[lovcom]

Originally Posted by Exile

But why would I even consider putting a Stateside connection into the inconvenience of shopping for and then sending product(s) to me? Then there are shipping charges, time consuming cargo transit delays, and CUSTOMS duties to contend with. The latter fees alone can be outrageous, often more than the value of the merchandise itself.

So just who needs to tune in?

You originally were complaining about stores in the Phillipines not providing refundability on certain purchases, right?!? I came up with possible work-arounds...sorry my help was wasted.

[Exile]

Originally Posted by lovcom

You originally were complaining about stores in the Phillipines not providing refundability on certain purchases, right?!? I came up with possible work-arounds...sorry my help was wasted.

I'm sorry if I came across as an ingrate, lovcom. but the solution that you offered while well-intentioned just isn't practical. Anyway, to the extent that most electronics products here are covered by manufacturer's warranty, all is not lost. In the case of the defective cell phone, the local Nokia service center repaired it twice for free as part of the warranty, but it was the retailer's refusal to replace the unit per my request that caused me to refer the matter to the credit card issuer.

[disneysteve]

Originally Posted by ActYourWage

No, that is not correct. There is a price. The people who are up to their eyeballs in CC debt pay for your lunch....that's how these CC companies are able to offfer you "rewards".

I suppose that's true. So "lunch" is free for me. Others are "treating" me to it.

[ActYourWage]

Originally Posted by disneysteve

I suppose that's true. So "lunch" is free for me. Others are "treating" me to it.

Well, to get technical about it, some people that are high in CC debt may also not have jobs, thus living off unemployment checks and other government sponsored items, therefore our taxes are paying to help sustain these items. So, there really is no such thing as a free lunch.....we are paying for it somewhere. I am not saying it is a bad thing that we are paying these added taxes though.

[am_vanquish]

Originally Posted by ActYourWage

Well, to get technical about it, some people that are high in CC debt may also not have jobs, thus living off unemployment checks and other government sponsored items, therefore our taxes are paying to help sustain these items. So, there really is no such thing as a free lunch.....we are paying for it somewhere. I am not saying it is a bad thing that we are paying these added taxes though.

There's also a school of thought that the prevalence of "reward" programs forces retailers to build the additional cost into their products. I actually read an interesting article (maybe I found it on this forum?) that said credit-card users are actually getting subsidized by those in poverty as a result.

Their logic was that all stores add 1%-3% to the price of all items to cover their charges from the CC companies. Those of us with rewards cards reap the benefits while those with bad credit who don't qualify for rewards programs pay cash (at the inflated price), thereby "subsidizing" our rewards programs.

I like the thought that those in debt are "treating" me (and DisneySteve) to lunch ... I'm going to stick with that one.

[Kris10Leigh]

That brings up a huge ethical dilemma, doesn't it? The system sucks, but I'm lucky enough to benefit from that system. Would my not using credit cards impact the system? Not at all. But isn't that the mindset so many have about the environment too? It's the mindset of no one else is recycling, why should I?

I don't know how I feel about this.

[ea1776]

Yes, my wife and I are in debt. Our total debt amounts to around 75% of our gross annual income. We are working hard to pay it off !

The percentage breakdown of our debt is:

60% student loans (average 5.3% interest)
25% credit cards (average 8% interest)
15% auto loan (5.35% interest)

[cool_like_fresh]

I feel like I am DYING with the amount of debt I'm dealing with!

Mortgage: $310000 ($1428/month)
Car Loan: $22400 ($394/month)
Visa + Mastercard: $10840 (paying $1000/month)
FutureShop + Bestbuy: $2100 ($185/month) (both are on no interest payment plans)

Total household income: $6850/month (net)

Percentage spent on debt: almost 44%

I swear to God, once my stupid credit card debt is gone, I am going to be a cash only man.

[EconoMutt]

Originally Posted by cool_like_fresh

I feel like I am DYING with the amount of debt I'm dealing with!

Mortgage: $310000 ($1428/month)
Car Loan: $22400 ($394/month)
Visa + Mastercard: $10840 (paying $1000/month)
FutureShop + Bestbuy: $2100 ($185/month) (both are on no interest payment plans)

Total household income: $6850/month (net)

Percentage spent on debt: almost 44%

I swear to God, once my stupid credit card debt is gone, I am going to be a cash only man.

In a year you'll be in great shape.
Hang in there.

[cool_like_fresh]

Thanks Mutt. I can see it, but it's seems SO far away!

[amarowsky]

Current debt situation

0$ consumer debt on cards or loans
0$ school debt
1400$ on a quick loan at 11.00% apr loan I had to take out for my mom, so technically not my debt even though in my name.

6000$ @9% car*** buying it tomorrow, will pay off about 1500 immediately, and then I'm gettin 2k from school in 2.5 months and 3k as a gift from family after the first of the year. So I should have it all paid off in about 3-4 months.

[myrdale]

$72k on the house. Lord willing once that is done, I will never see debt again!

[Exile]

Originally Posted by amarowsky

Current debt situation

0$ consumer debt on cards or loans
0$ school debt
1400$ on a quick loan at 11.00% apr loan I had to take out for my mom, so technically not my debt even though in my name.

I'm a retired bill collector, amarowsky, and I hate to split hairs with you , but I think that you should be aware that as long as the loan is in your name, it's very much "technically" your debt.

[Slandgie]

Mortgage: $99K (anticipated pay off 2020, about 13 years early)
Auto Loan1: $13K (anticipated pay off Jun 2013, about 20 months early)
Auto Loan2: $12K (anticipated pay off Aug 2013, about 6 months early)
Credit Cards: $11K (anticipated pay off Oct 2011)