ECON Americans Rack Up $1.25 Trillion in Debt, 13% Delinquent

[Henry Bowman]

Americans Rack Up $1.25 Trillion in Debt, 13% Delinquent​

(Dreamstime)
By Lee Barney | Friday, 29 May 2026 02:29 PM EDT

https://www.newsmax.com/finance/streettalk/credit-card-debt/2026/05/29/id/1257949/

Americans' total credit-card balance reached a record $1.25 trillion in the first quarter of 2026, up nearly 6% (5.9%) from $1.18 trillion in the same quarter a year earlier, according to the Federal Reserve Bank of New York.
At the same time, 13.12% of credit-card balances were at least 90 days delinquent, the highest level in 15 years and the worst reading since the aftermath of the 2008 financial crisis.

The surge in debt comes as many households continue to struggle with high prices and elevated borrowing costs.
Average credit-card interest rates climbed to 21% in February, up from 14.6% in February 2022, according to Federal Reserve data cited by The Wall Street Journal.

Inflation has also remained stubbornly high, with the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rising to 3.8% in April, keeping pressure on family budgets.

President Donald Trump has largely downplayed concerns about consumer financial stress. Earlier this month, when asked whether the financial situation of Americans was a factor in ending the conflict with Iran, Trump responded: "Not even a little bit." Yet the latest debt figures suggest many households are struggling to keep up with rising costs.

FIGHTING INFLATION
"When food, housing and healthcare is all more expensive, there is less money to pay off your credit card," said Breno Braga, an economist at the Urban Institute.

"They don't want to lose their house or their cars,” Braga continued. “They need to pay their utility bills. They're more likely to stop paying their credit cards first."

Braga's research found that 5.6% of credit-card holders were at least 60 days behind on payments last year, exceeding pre-pandemic levels. Delinquencies rose across low-, middle- and high-income communities, reaching the highest levels seen since 2018.
The mounting pressure has sent more Americans to nonprofit credit-counseling agencies.

The National Foundation for Credit Counseling reported a 24% increase in clients in January compared with a year earlier. The group's average monthly client volume is now 60% higher than it was in 2018.

"Middle-class households in particular are struggling to pay down balances as more families shift to a pattern of survival debt," Bruce McClary, spokesman for the National Foundation for Credit Counseling, told the Journal.

Melissa Meggison, a medical assistant from South Portland, Maine, became one of those counseling clients after a divorce shattered her financial stability.
Once able to keep her credit-card balances near zero, she began relying on cards to cover everyday expenses and purchases while coping with life on her own.
Within months, her balances ballooned above $20,000. One card carried a 29% interest rate. Late fees piled up. Collection agencies called constantly.
"They don't let up with the phone calls," Meggison said. "I think I was being called every hour — at my work, at home. But I just didn't have the money."
The stress became overwhelming. Facing incessant bills, mounting debt and relentless collection calls, Meggison ultimately sold her home and used the proceeds to pay off much of what she owed. Even now, after remarrying and paying down about half of her remaining credit-card debt, she says financial anxiety remains a daily reality.
"I am a little better off, but still living paycheck to paycheck," Meggison said. "It's very tempting to open new credit cards to ease that burden. But from my past mistakes, I know it makes things worse in the end."

$6,700 IN REVOLVING DEBT

Financial counselors say stories like Meggison's are becoming increasingly common as households confront a combination of high borrowing costs, elevated living expenses and shrinking financial cushions.
Americans carry an average of roughly $6,500 to $6,700 in credit-card debt, according to credit-reporting agencies, and a growing share of borrowers now owe more than $10,000.

For many families, the challenge is no longer discretionary spending but simply making ends meet.

Newsmax Wires contributed to this report.

 

[hiwall]

Obviously the debt will continue to go up and so will the delinquencies.

 

[diesel85]

On top of this, I read today that there is a 70% chance of a fed rate hike by the end of the year. Not sure how many basis points, but it will rise.

 

[King Samson]

Funny.. Not a single word in that whole article WHY people are having a tough time and in debt. Nothing about the other side of the equation, and keeping a budget, and taking a HARD look at spending, to cut out waste...

it's almost as they WANT to keep the public in debt, so they can control them...

 

[Henry Bowman]

Funny.. Not a single word in that whole article WHY people are having a tough time and in debt. Nothing about the other side of the equation, and keeping a budget, and taking a HARD look at spending, to cut out waste...

it's almost as they WANT to keep the public in debt, so they can control them...

From the article

"The surge in debt comes as many households continue to struggle with high prices and elevated borrowing costs.
Average credit-card interest rates climbed to 21% in February, up from 14.6% in February 2022, according to Federal Reserve data cited by The Wall Street Journal.

Inflation has also remained stubbornly high, with the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rising to 3.8% in April, keeping pressure on family budgets."

 

[teedee]

I have often wondered about the average credit card bill. I probably go through about 3K a month but pay that off every month. Does that count toward my average??

 

[straightstreet]

All of our bills go on discover. DH pays it off weekly. We use discover points to shop for what we need.

 

[West]

All of our bills go on discover. DH pays it off weekly. We use discover points to shop for what we need.

Capital One I think bought out Discover.

Not 100% sure.

 

[20Gauge]

That reminds me. I need to pay off the cc monday. I just bought a new chipper shredder for the yard.

 

[King Samson]

"The surge in debt comes as many households continue to struggle with high prices and elevated borrowing costs.
Average credit-card interest rates climbed to 21% in February, up from 14.6% in February 2022, according to Federal Reserve data cited by The Wall Street Journal.

Totally meaningless statement. Just saying a "surge in debt", tells us nothing, until we know WHAT they are putting on their credit card.

Inflation has also remained stubbornly high, with the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rising to 3.8% in April, keeping pressure on family budgets."

Also meaningless, until they outline what's on that budget, and what they're spending on each month.

Bottom line, they know, to the penny, what their take home pay is every month. Then it's time to sit down with printed bank statements, printed credit card statements, debit card statements and all receipts for the month, and keep cutting items, until spending equals take home pay.

Actually, they need to keep cutting, until they get 10% below the take home pay, and save that extra for emergencies.

Problem is, very few will actually do that.... and it's become way too easy to swipe plastic all month, and cry at the end of the month.

 

[foreverkeeps]

We are part of the 13% ever since hubby was laid off last year. We were paying all our CC debt off until then.

Now, they will all have to charge off and go unpaid since I will be leaving my job next month.

(Retiring at 66 and 10 months and hubby is 72 1/2)

 

[Henry Bowman]

Totally meaningless statement. Just saying a "surge in debt", tells us nothing, until we know WHAT they are putting on their credit card.


Also meaningless, until they outline what's on that budget, and what they're spending on each month.

Bottom line, they know, to the penny, what their take home pay is every month. Then it's time to sit down with printed bank statements, printed credit card statements, debit card statements and all receipts for the month, and keep cutting items, until spending equals take home pay.

Actually, they need to keep cutting, until they get 10% below the take home pay, and save that extra for emergencies.

Problem is, very few will actually do that.... and it's become way too easy to swipe plastic all month, and cry at the end of the month.

So credit card debt isn't up to $1.3 Trillion and there isn't a 13% default ?

 

[King Samson]

So credit card debt isn't up to $1.3 Trillion and there isn't a 13% default ?

Go back up, and READ what I posted again.

 

[Henry Bowman]

 

[MountainBiker]

Housing costs, utilities, insurance, child care, transportation etc have risen out of sync with income, especially for young people trying to get a start who didn't have a cushion to start with, but also for many lower income people who had been hanging on OK but inflation under the current and the prior administration have pushed costs up faster than incomes rose. Those people I feel bad for but there are many others who have no discipline and who have brought it on themselves.

I have neighbors who came within 2 days of losing their house to a tax sale but they found themselves a sucker to loan them money to cover their 5 years in arrears. What they spend on beer and cigarettes each month is greater than what their property taxes are, but they choose the beer and cigarettes as a higher priority. Now 2 years later they are 2 years in arrears on their taxes and literally every day there are Door Dash deliveries of restaurant food and at least weekly deliveries of groceries. These aren't disabled people. There are 2 adults, one working FT and one PT and no minor children. They just have no financial discipline at all. I would not be surprised in the least if they have huge credit card debt in arrears. Some people can't be helped.

 

[Henry Bowman]

Housing costs, utilities, insurance, child care, transportation etc have risen out of sync with income, especially for young people trying to get a start who didn't have a cushion to start with, but also for many lower income people who had been hanging on OK but inflation under the current and the prior administration have pushed costs up faster than incomes rose. Those people I feel bad for but there are many others who have no discipline and who have brought it on themselves.

I have neighbors who came within 2 days of losing their house to a tax sale but they found themselves a sucker to loan them money to cover their 5 years in arrears. What they spend on beer and cigarettes each month is greater than what their property taxes are, but they choose the beer and cigarettes as a higher priority. Now 2 years later they are 2 years in arrears on their taxes and literally every day there are Door Dash deliveries of restaurant food and at least weekly deliveries of groceries. These aren't disabled people. There are 2 adults, one working FT and one PT and no minor children. They just have no financial discipline at all. I would not be surprised in the least if they have huge credit card debt in arrears. Some people can't be helped.

Yeah there are tons of those to be sure. It never ceases to amaze me how fiscally irresponsible many people are.
Some , probably more than we realize cause their own issues but there is no ignoring the fact that for some the rising costs are just too hard to surmount through no real fault of their own.
.
In my job I need to get some people financed in order to do projects they need and I am seeing a lot of turndowns or they are not able to get the full amount needed. I would estimate its over 40% more turndowns this year over last. I am surprised at how many are fairly affluent people with very good income and solid jobs.

The ones I feel for are the younger adults just starting out, they are behind the 8 ball in many circumstances , Hard to get a good running start.

A lot have never been told about the extra tax of inflation and they just dont know how to handle it.

In the end , the reasons for it do not matter as much as the fact that is is in fact happening and we as a whole are in mountains of debt...Not sure how it will all end .

https://www.usdebtclock.org/

 

[West]

I just made the Dollar store make good with a sale they had days ago. They left the sales signs up on the soda isle, $1.50 for a two liter.

The sale ran up the 2 liter at $2.75 each. I said I'll only pay the buck fifty as advertised!

They said okay, and pulled the big sales ad they had left hanging under the soda shelf. And I got 4- two liters at a buck fifty each!

 

[Doc1]

From the article

"The surge in debt comes as many households continue to struggle with high prices and elevated borrowing costs.
Average credit-card interest rates climbed to 21% in February, up from 14.6% in February 2022, according to Federal Reserve data cited by The Wall Street Journal.

Inflation has also remained stubbornly high, with the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rising to 3.8% in April, keeping pressure on family budgets."

The credit card industry has a counter-intuitive term for people who pay off their balances every month. They're called "deadbeats." Yes, I know that the term is typically used to refer to people who don't pay their bills, but the CC company's look at those people who use the CC company's money for free and don't rack up fees as deadbeats.

The CC companies always adjust their interest rates to stay above the delinquency rates and still make money.
When was the last time you heard of a bankrupt credit card company?

Best
Doc

 

[King Samson]

Yeah there are tons of those to be sure. It never ceases to amaze me how fiscally irresponsible many people are.
Some , probably more than we realize cause their own issues

So, it's not the total credit card debt, or the interest rate, that's the problem? But a budget and spending issue?

 

[Kathy in FL]

From the article

"The surge in debt comes as many households continue to struggle with high prices and elevated borrowing costs.
Average credit-card interest rates climbed to 21% in February, up from 14.6% in February 2022, according to Federal Reserve data cited by The Wall Street Journal.

Inflation has also remained stubbornly high, with the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, rising to 3.8% in April, keeping pressure on family budgets."

high prices
elevated borrowing costs

The high prices of what?
The elevated borrowing costs for what purpose?

And how many of those are in a higher interest bracket specifically because of their debt to income ratio as well as past debt behavior including but not limited to slow/late payments on their bills/debt.

Those questions would reveal a lot. A couple of decades ago it was common practice to declare bankruptcy, then rack up more debt and declare bankruptcy again, wash and repeat. But when they changed the bankruptcy laws it became impossible to do that and a lot of people floundered badly.

We're going back into a season where businesses are going to have to slim down the people they offer credit to simply because of the credit contracting.

People are their own worst enemies. My husband grew up in a house that only had floors because of the number of layers of linoleum on it. He had a "job" at 8 emptying the out of date beer cans from a local distributor so he could recycle the cans. He went to work at 14 at a local amusement park/zoo then at 16 to them local theme park (actually where we met) and put himself through college. He took the bus or carpooled until at 17 he got his own car. Etc etc

If someone with a start like that can wind up the owner of a successful business, weather multiple economic upheavals over the 30 years the business has been in existence, raise a family, put them through college, etc etc then everyone can do it. Just not everyone will.

At some point you have to take personal responsibility for your choices. All of them.

 

[Hognutz]

The credit card industry has a counter-intuitive term for people who pay off their balances every month. They're called "deadbeats." Yes, I know that the term is typically used to refer to people who don't pay their bills, but the CC company's look at those people who use the CC company's money for free and don't rack up fees as deadbeats.

The CC companies always adjust their interest rates to stay above the delinquency rates and still make money.
When was the last time you heard of a bankrupt credit card company?

Best
Doc

Reckon I am a deadbeat….

 

[Henry Bowman]

high prices
elevated borrowing costs

The high prices of what?
The elevated borrowing costs for what purpose?

And how many of those are in a higher interest bracket specifically because of their debt to income ratio as well as past debt behavior including but not limited to slow/late payments on their bills/debt.

Those questions would reveal a lot. A couple of decades ago it was common practice to declare bankruptcy, then rack up more debt and declare bankruptcy again, wash and repeat. But when they changed the bankruptcy laws it became impossible to do that and a lot of people floundered badly.

We're going back into a season where businesses are going to have to slim down the people they offer credit to simply because of the credit contracting.

People are their own worst enemies. My husband grew up in a house that only had floors because of the number of layers of linoleum on it. He had a "job" at 8 emptying the out of date beer cans from a local distributor so he could recycle the cans. He went to work at 14 at a local amusement park/zoo then at 16 to them local theme park (actually where we met) and put himself through college. He took the bus or carpooled until at 17 he got his own car. Etc etc

If someone with a start like that can wind up the owner of a successful business, weather multiple economic upheavals over the 30 years the business has been in existence, raise a family, put them through college, etc etc then everyone can do it. Just not everyone will.

At some point you have to take personal responsibility for your choices. All of them.

Are you unaware of the rising costs pretty much across the board?

Some areas the price of a number of items has remained somewhat stable but in other areas ( and these can be region specific but still bleed over ) it has gone up dramatically in this past year. Gasoline of course is one, Beef , paper products...all are up, no need to print stats we all go to the grocery store and see it. For some it has had a dramatic effect

I will use HVAC equipment as an example ( since I know it and a number of people here know it quite well). Since 2021 the price has gone through the roof. In most cases it has doubled or more. What was $7000 on average for a gas/oil furnace of good quality is now over $16,000. This is along with replacement parts and of course labor, the cost of insurance etc.. All up. Parts for cars, appliances ( Original parts not knock offs) all up. Just some examples of course and it doesn't cover everything but a person would have to be an idiot not to see it.

As I said, there are those who do this to themselves by not being smart, they are always there but not everyone fits in that bracket.

Your Husband being a great example of what hustling can do , sadly not everyone is like him, we would be far better off if more were to be sure.

The point is debt is going higher, we cannot dispute that . Whatever the underlying reason and there are many, the fact is the fact, its up high with no stopping it in sight.

Just look at our debt , we are over 132% Debt to income ratio ( Debt to GDP ) that is called bankruptcy in the real world where printing of money is not possible.

 

[MountainBiker]

The credit card industry has a counter-intuitive term for people who pay off their balances every month. They're called "deadbeats." Yes, I know that the term is typically used to refer to people who don't pay their bills, but the CC company's look at those people who use the CC company's money for free and don't rack up fees as deadbeats.

The CC companies always adjust their interest rates to stay above the delinquency rates and still make money.
When was the last time you heard of a bankrupt credit card company?

Best
Doc

The high fees that the charge the vendors still make them plenty of money on the purchases made by those of us that pay our credit card bill in full every month.

 

[King Samson]

The CC companies always adjust their interest rates to stay above the delinquency rates and still make money.
When was the last time you heard of a bankrupt credit card company?

The other gotcha the CC companies do, is to offer "12 months same as cash" as a hook, and people jump on it. But the CC companies also know, half of those people will miss a payment, or make a late payment, and they'll get to add all the accrued interest back in, at 24% or more.

 

[King Samson]

Some areas the price of a number of items has remained somewhat stable but in other areas ( and these can be region specific but still bleed over ) it has gone up dramatically in this past year. Gasoline of course is one, Beef , paper products...all are up, no need to print stats we all go to the grocery store and see it.

That all can be fixed, by people looking at their budget and spending, and making necessary cuts as needed.

Gasoline... get a better fuel efficient car, or structure your driving, and group your trips, instead of running out, without a plan.

Beef.... eat chicken or pasta...

Paper products... wash and reuse dishes, towels, cups, etc., instead of being lazy, and going the paper route.

There are solutions, but most don't want to sacrifice or put the effort in.

 

[Kathy in FL]

Are you unaware of the rising costs pretty much across the board?

Some areas the price of a number of items has remained somewhat stable but in other areas ( and these can be region specific but still bleed over ) it has gone up dramatically in this past year. Gasoline of course is one, Beef , paper products...all are up, no need to print stats we all go to the grocery store and see it. For some it has had a dramatic effect

I will use HVAC equipment as an example ( since I know it and a number of people here know it quite well). Since 2021 the price has gone through the roof. In most cases it has doubled or more. What was $7000 on average for a gas/oil furnace of good quality is now over $16,000. This is along with replacement parts and of course labor, the cost of insurance etc.. All up. Parts for cars, appliances ( Original parts not knock offs) all up. Just some examples of course and it doesn't cover everything but a person would have to be an idiot not to see it.

As I said, there are those who do this to themselves by not being smart, they are always there but not everyone fits in that bracket.

Your Husband being a great example of what hustling can do , sadly not everyone is like him, we would be far better off if more were to be sure.

The point is debt is going higher, we cannot dispute that . Whatever the underlying reason and there are many, the fact is the fact, its up high with no stopping it in sight.

Just look at our debt , we are over 132% Debt to income ratio ( Debt to GDP ) that is called bankruptcy in the real world where printing of money is not possible.

As a business owner, of course I am aware of rising prices. I was probably aware well before the general public simply due to the nature of owning your own business.

But that doesn't change the fact that generalizations rarely tell the entire truth and that drilling down on the individual spending habits of people is the only way to determine what is a "generalization" and what their personal spending habits might have to do with the place they find themselves.

Sure, everything is going up but then again it always has. The price of real estate should prove that. And look at the cost of a gallon of milk and a gallon of unleaded fuel. When I was 18 they were in parity ... 99 cents. They are still roughly in parity now depending on the kind/brand of milk you buy. Nearly $4 per gallon. That was forty years ago. Throw a loaf of bread in there and depending on kind/brand you are almost at parity there as well. When hubby and I got married 38 years ago we could get two loaves of the cheap bread for a dollar. Ground hamburger (the 70/30) was also 99 cents a pound. I haven't looked at ground beef in a long time but I know it isn't 99 cents a pound for gosh sake.

When I first started working minimum wage was $3.25/hour in 1984 in FL. I could put myself through college, pay for my fuel, pay my car payment, pay my auto insurance, and occasionally buy myself a new pair of shoes ... my clothes I sewed myself or lived in my cousin's hand me downs even into my 20s. My gifts to other people were handmade. I washed my car myself and did a lot of the maintenance on it myself.

Today? Florida is about to bounce the minimum wage up to $15/hour. Everyone has made themselves dependent on loans to go to college for degrees that rarely create an income they can pay the loan back. Everyone wants a new car instead of the scrap metal we used to all drive until it fell apart and you sadly watched it head to the junkyard while frantically looking for your next piece of future junkyard fodder. People rarely carpool anymore no matter how much the eco-freaks tell people they need to, and maybe because of that. Kids don't want to work because it will use up all their gaming time. Etc ad nauseum.

Spending habits are different and make an existing reality of prices always going up more challenging.

So yeah. I'm aware of rising prices just like I've been away of it for the 59 years I've walked this planet. It isn't anything new. What is new is all the high priced junk people choose to spend their limited income on and then still manage to whine they can't save anything.

 

[Henry Bowman]

That all can be fixed, by people looking at their budget and spending, and making necessary cuts as needed.

Gasoline... get a better fuel efficient car, or structure your driving, and group your trips, instead of running out, without a plan.

Beef.... eat chicken or pasta...

Paper products... wash and reuse dishes, towels, cups, etc., instead of being lazy, and going the paper route.

There are solutions, but most don't want to sacrifice or put the effort in.

And if you need to replace an HVAC system ?

I am sure you will have a hindsight is 20/20 answer but the fact is those costs are up, that is the point, not that you cant change your shopping habits, some cannot. I dont know what is a replacement for toilet paper but I am sure you reuse over and over again.

Anyway, I need to go and hike and then to the range, I suggest you do the same, you are on here way too much...not healthy.

 

[Chance]

The dollar can't buy much anymore. This inflation is killing us.

 

[King Samson]

And if you need to replace an HVAC system ?

You use the extra 10% you cut from your budget, that I already mentioned, and save for emergencies. Heck, I'll be changing out my HVAC system soon, and money will come from watching my budget and saving. Pretty amazing, right?

I am sure you will have a hindsight is 20/20 answer but the fact is those costs are up, that is the point, not that you cant change your shopping habits, some cannot.

everyone, oops, Everyone, wait, EVERYONE can change their spending and shopping habits. To say they cannot, is a cop out. Here's another newsflash, costs have been going up since you appeared on this rock, for multiple decades, and will continue to do so, long after you and I are gone.

Once again, it's a simple equation: income has to equal spending. Wanna spend more, find a way to make more income.

Anyway, I need to go and hike and then to the range, I suggest you do the same, you are on here way too much...not healthy.

I can guarantee I'm healthier than 98% of the other dudes my age on this forum. But thanks for your concern.

I'll be out running the pup 3-4 miles, right after lunch. Wanna join us?

 

[Henry Bowman]

As a business owner, of course I am aware of rising prices. I was probably aware well before the general public simply due to the nature of owning your own business.

But that doesn't change the fact that generalizations rarely tell the entire truth and that drilling down on the individual spending habits of people is the only way to determine what is a "generalization" and what their personal spending habits might have to do with the place they find themselves.

Sure, everything is going up but then again it always has. The price of real estate should prove that. And look at the cost of a gallon of milk and a gallon of unleaded fuel. When I was 18 they were in parity ... 99 cents. They are still roughly in parity now depending on the kind/brand of milk you buy. Nearly $4 per gallon. That was forty years ago. Throw a loaf of bread in there and depending on kind/brand you are almost at parity there as well. When hubby and I got married 38 years ago we could get two loaves of the cheap bread for a dollar. Ground hamburger (the 70/30) was also 99 cents a pound. I haven't looked at ground beef in a long time but I know it isn't 99 cents a pound for gosh sake.

When I first started working minimum wage was $3.25/hour in 1984 in FL. I could put myself through college, pay for my fuel, pay my car payment, pay my auto insurance, and occasionally buy myself a new pair of shoes ... my clothes I sewed myself or lived in my cousin's hand me downs even into my 20s. My gifts to other people were handmade. I washed my car myself and did a lot of the maintenance on it myself.

Today? Florida is about to bounce the minimum wage up to $15/hour. Everyone has made themselves dependent on loans to go to college for degrees that rarely create an income they can pay the loan back. Everyone wants a new car instead of the scrap metal we used to all drive until it fell apart and you sadly watched it head to the junkyard while frantically looking for your next piece of future junkyard fodder. People rarely carpool anymore no matter how much the eco-freaks tell people they need to, and maybe because of that. Kids don't want to work because it will use up all their gaming time. Etc ad nauseum.

Spending habits are different and make an existing reality of prices always going up more challenging.

So yeah. I'm aware of rising prices just like I've been away of it for the 59 years I've walked this planet. It isn't anything new. What is new is all the high priced junk people choose to spend their limited income on and then still manage to whine they can't save anything.

You are amazing , not everyone is and even if they were the facts would still be there...how then do we get the national debt down being as we are spending ourselves into oblivion ?

That is the real problem. Do people need to be fiscally responsible? YES! again 1000times YES!

The stubborn facts are that we are here now, and need a plan to fix it . We may well be past the point of no return.

 

[Henry Bowman]

You use the extra 10% you cut from your budget, that I already mentioned, and save for emergencies. Heck, I'll be changing out my HVAC system soon, and money will come from watching my budget and saving. Pretty amazing, right?


everyone, oops, Everyone, wait, EVERYONE can change their spending and shopping habits. To say they cannot, is a cop out. Here's another newsflash, costs have been going up since you appeared on this rock, for multiple decades, and will continue to do so, long after you and I are gone.

Once again, it's a simple equation: income has to equal spending. Wanna spend more, find a way to make more income.


I can guarantee I'm healthier than 98% of the other dudes my age on this forum. But thanks for your concern.

I'll be out running the pup 3-4 miles, right after lunch. Wanna

Yup shoulda , woulda , coulda...the facts remain...Enjoy your run and stay off here for 24 hours.

 

[Kathy in FL]

And if you need to replace an HVAC system ?

I am sure you will have a hindsight is 20/20 answer but the fact is those costs are up, that is the point, not that you cant change your shopping habits, some cannot. I dont know what is a replacement for toilet paper but I am sure you reuse over and over again.

Anyway, I need to go and hike and then to the range, I suggest you do the same, you are on here way too much...not healthy.

They didn't differentiate between home owners and renters in the article so your question is just a gotcha. Renters don't have HVAC repair/replacement costs. Someone that is a homeowner should be smart enough to save for a rainy day repair/maintenance issue and that plan may be a CC or payment plan offered by the HVAC company. Either way that is an acceptable debt yet it is being lumped in with those people that need the latest electronic gadget, the monthly bill for eleventy dozen different channels they don't watch, streaming services they have on auto debit despite only watching them a couple times a month, etc.

I just threw a hissy at my youngest son after finding out how many streaming things he had going just because he gets the student rate. He's starting to trim his personal bills so he can take an extra class each semester. He buys his own groceries because he is 22 years old and needs to be responsible ... but Momma did turn him onto Aldi because their ground chicken (he eats birds and fish and rice and quinoa and little else because he is a body builder) is good and inexpensive compared to other places. And now he is getting all of his groceries there except for the rare pit stop at Publix.

There are always places that can be nipped and tucked. And always situations where you need to plan ahead for potential hiccups.

 

[King Samson]

Yup shoulda , woulda , coulda...the facts remain..

Yep, the facts do remain, there a reason over 70% of the population lives paycheck to paycheck. Once they figure out WHY, they'll be in better shape... sadly the far majority, never will.

But hey, if they start here, and follow the plan, it all can be fixed:

A Proven Plan for Financial Success | RamseySolutions.com

Learn to budget, beat debt, save and invest with Ramsey Solutions, founded by Dave Ramsey, bestselling author, radio host and America’s trusted voice on money.

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Enjoy your run and stay off here for 24 hours.

I will DEFINITELY enjoy our run, it's the highlight of my day, and makes me (and him) feel great!!

But, if I stay off 24 hours, who's going to keep you in line?

 

[King Samson]

high prices
elevated borrowing costs

The high prices of what?
The elevated borrowing costs for what purpose?

And how many of those are in a higher interest bracket specifically because of their debt to income ratio as well as past debt behavior including but not limited to slow/late payments on their bills/debt.

Those questions would reveal a lot.

That's the issue I have with these type of articles, as they just tell one side of a story, but don't go into the details you posted. What I'd like to see;

What's their monthly income?
What's their monthly housing cost, rent or mortgage?
What are they driving and the monthly car payments?
What are they spending on groceries each month?
How much did they spend on Amazon during the month?

Then..

How often are they calling Door Dash each month?
How often are they going out for lunch or dinner?
How may streaming services are they paying for?
What cell phone do they have, a iPhone 17Pro at $1700?
Where did they go for vacation?
What other luxuries do they feel they're "entitled to?

Knowing these answers would give a lot better picture why "things are so expensive" for them.

 

[Terrwyn]

My bills are paid from checking account. But all my spending is via credit cards. Cat food, groceries, fast food delivery, Amazon and Walmart. I do all my shopping online so credit card bills are fairly large but I pay them off every month.
Everything is hugely expensive. Even books are just crazy prices. If I cut back I would be sitting here in my chair staring into space. I do spend a lot on streaming. The stupid phone and tablet cost me 167 mo. I don't really care when I'm broke then I will dead myself. I sacrificed enough thru my life. I laugh at vacations. When we opened the business in the early 80's there were never anymore vacations.

 

[von Koehler]

These kinds of discussions always, invariably, results in very judgemental comments stating it's entirely the debtors fault for not being financially responsible.

Undoubtedly there are some who belong in this category.

However, over half of personal bankruptcy cases are due to massive, often unplanned, medical expenses.
Life can throw even the most responsible people a overwhelming curve.

There was a reason why the founding fathers inserted a bankruptcy clause in the Constitution. They wanted to prevent the British system of debtor's prisons from being established in America.

Declaring bankruptcy is no picnic.

 

[West]

These kinds of discussions always, invariably, results in very judgemental comments stating it's entirely the debtors fault for not being financially responsible.

Undoubtedly there are some who belong in this category.

However, over half of personal bankruptcy cases are due to massive, often unplanned, medical expenses.
Life can throw even the most responsible people a overwhelming curve.

There was a reason why the founding fathers inserted a bankruptcy clause in the Constitution.

Declaring bankruptcy is no picnic.

And divorces, frivolous lawsuits, etc...

Sometimes I find my self judgemental of people with no work ethics. Then realize many are indeed raised that way. Or are educated with the idea their owed. And or have grown dependent on others or government safety nets etc.. government workers as well. I've met many a bureaucrats and educators that really believe their some how special. And there jobs are so easy its disgusting. While they couldn't change a light bulb, but are so much better than a tradesman etc...

Have to bite tongue.

 

[von Koehler]

The end result, the bottom line, is that this countries debt (federal, state, local, business, and personal) is so huge that default is the inevitable result.

It cannot be paid back; it's way too big.

No country historically has ever been able to escape this level of debt trap.

 

[West]

Maybe the 1 ounce $100,000,000 face gold coin would settle our debts. Probably have to open up the mines in extreme N. California and in the Sierra Nevadas. There's still mother loads up there.

 

[Kathy in FL]

You are amazing , not everyone is and even if they were the facts would still be there...how then do we get the national debt down being as we are spending ourselves into oblivion ?

That is the real problem. Do people need to be fiscally responsible? YES! again 1000times YES!

The stubborn facts are that we are here now, and need a plan to fix it . We may well be past the point of no return.

National debt? We start with government entitlements because that would be the easiest to do. Working age adults with no disabilities should not qualify for assistance.

You can have as many children as you want, but that doesn't mean everyone else has to pay for them ... for every child you have your assistance amount should go lower, not higher. Father's of those babies must be determined by blood tests and those men will be reimbursing the tax payer for any assistance the child receives.

Depending on what caused the disability determines whether you receive taxpayer assistance ... if you are on drugs and can't work because you've damaged yourself too much, you don't get disability, if your hearing is damaged because you listened to loud boom-boom much or your gaming headphones were too loud for too long, you don't get disability, etc.

If you owe a victim restitution, you don't get entitlements and the money may come out of your social security funds.

If you don't pay a legal debt (you have a lien against you) and it is still there come time for your to take social security, that income can be attached.

Renters will have to pay the nominal amount of property taxes to pay for public schools the same way that all property owners do.

Etc etc.

Concurrently the government payroll should be shrunk until every office all the way up the line, including congressional offices, should squeal like stuck pigs. Political office holders should prove that they've been able to work in the public sector for a minimum of a decade until they hold office.

I've got plenty of other ideas including about military spending, international funding, and more than just a few other things like any country that criticizes the US and/or participates or supports denigrating and/or attacking us loses all funding and/or support. We don't clean up other people's messes either.