Name User

"They've" been predicting a crash now for years. CC debt will always be at all time highs, because of economic expansion and inflation. Hell I have $2,000-$3,000 in credit card debt, every month. I would assume many here have far more. However, when you look further into those statistics, you'll find most people pay off the debt monthly, and a minority actually carry debt month to month. The amount they carry is substantial however and skews the average (average vs median is often used incorrectly).

7 out of the past 8 recessions have been preceded by a runup in energy prices. That includes 2008. People will buy gas for their cars before they pay their CC and mortgages.

The good news is since 2008, car mpg has increased dramatically and with inflation prices would have to hit $8-$9/gal in order to be where we were on a household level back in 2007-2008. Remember, it went from $1 to $4 over just several years, which was a big shock, and that was the era of the Ford Excursion and 8-10 mpg SUVs. That is what I love about EVs, the energy is not only domestically produced but energy prices (outside TX) remain cheap and predictable, which greatly reduces chances of economic recession, since, again, energy is what generally brings on recessions in modern times. It's a shame they've become political.

Also, just IMO, the fed and US Government won't ever let 2008 happen again. They will just go full covid and print more money. There is nothing really stopping them, inflation is of course a byproduct, but as long as you own assets that adjust automatically you'll be fine. Sucks for the lower/middle class though, who don't own much.

trip

For real? You certainly should as it's a major revenue stream that's surpassing operational revenue.
https://www.businesstimes.com.sg/com...-bank-partners

Cachaco

Man, just when I thought I have read it all.

The vast minority carry debt month to month: this could not be further from the truth. According to experts, quite the opposite, and the reason household CC has never been this high.

And don’t get me started on inflation, printing money. You obviously never took basic Macroeconomics. Oh boy. Stick to flying airplanes.

Name User

If you go back and re-read what I wrote, I wrote the minority carry debt month to month. A 2024 Federal Reserve study showed 39% carried a balance at least once in the past 12 months. What is your source for that this is incorrect, and what experts are you citing?

As far as inflation goes, nothing I wrote was incorrect.

Lonestarcaptain

This Fed? Maybe they revised the numbers after you read it but credit and debt in general are becoming unserviceable. Not payable but unserviceable, meaning people are not even able to make minimum payments.

https://www.newyorkfed.org/microeconomics/hhdc

https://libertystreeteconomics.newyorkfed.org/2024/05/delinquency-is-increasingly-in-the-cards-for-maxed-out-borrowers
/

Justout of curiosity before I go you mentions you "like EVs because we produce the energy domestically?" Where is it that you imagine this energy comes from?

Name User

Delinquency rates for credit cards are lower than they have been on average over the past 30 years, and are only 0.50% higher off their pre-covid numbers. To put that in perspective, that means one additional person per 200 is defaulting on their credit cards vs five years ago.

Delinquency Rate on Credit Card Loans, All Commercial Banks (DRCCLACBS) FRED St. Louis Fed (stlouisfed.org)

The energy for EVs comes from the same place the energy for your TV, cell phone, computer, microwave, and vibrator comes from - your wall socket.

8802

Airline Credit Cards....such a new concept.

Credit History: The Birth of the Air Travel Card - APEX

"The Air Travel Card quickly rose in popularity, accounting for about half of participating airlines’ revenues by 1941."

StoneQOLdCrazy

not all airlines will have equal outcomes if the economy sputters. Those with high debt will have to shrink.

JulesWinfield

Good thing AA acquired the debt when it was cheap, and is 75% of the way towards their debt repayment plan.

Swakid8

That energy for the EV comes from the wall socket..... Most folks I've spoken to that owned EVs have only seen an increase of 50 to 60 dollars a month on their electric bill vs 40 to 50 dollars per tank of gas. Cutting out or down those gas expenses does have a positive impact on ones household budget. Before EVs, once energery prices shot up, consumer spending decreased as a house-hold budget would take a hit with gas prices.