It's Tea Time

Edit 5/12/09: Apparently the average CC debt number is very skewed. It is much more likely the average CC debt is in the $2500-$3000 range. This makes much more sense, and paints a much less dreary picture. Check this out: The Big Lie About Credit Card Debt

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Almost 80 percent of American households have credit cards. The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008, according to CreditCard.com, an online marketplace designed to link consumers and card issuers.

"Individuals are going to have to save more. That's why savings incentives are so important," he said. "That's why we need to do things to stop the marketing of credit in ways that addicts people to it and so that our households are again saving and families are again preparing to send their kids to college."

Jesus, $10,679 is the average credit card debt for the American household? Stop reading and just take a moment to let that sink in. If you're someone in that position, I feel for you. That's a really tough place to be. Still, I think many of you, if you're honest with yourselves, would find that is wasn't just "bad luck" that landed you in that position. Credit cards were never meant to be used for major loans, the interest rates alone explain that. They are convenient, but not economical.

Which brings me to the second quote. I resent the fact that Larry Summers thinks I need protection from marketing practices that "addict" people to credit. I'm really sorry folks, but if you can't see the truth in what credit cards are, then we're all royally screwed. It doesn't matter what the government does for you, you'll still suck.

Truth is, I think everyone gets it just fine right now. They realize what they have to do, but it just takes time. When I first moved out of my home, a bunch of circumstances out of my control led me into about $6000 worth of credit card debt. I ended up having to make some tough decisions, and focus on paying it down. Credit card companies are often interested in helping you out, and there are always the balance transfers to new CC's at 0% APR which are a huge help. Obviously you don't want to do that again and again, but if it's your first time learning your lesson it's a very helpful option. Long story short, a year later I was free and have been since. That was about seven years ago.

People need time to reorganize. You want to help them? Let them know their options. First thing you should always do is call your credit card company and speak with them. Let them know your situation. They can give you options. Some profit is better than no profit, so they have good reason to want to work with you.

As communities we need to be supportive. Competition is great, I love it, but it can be detrimental when it drives people to live way beyond their means. Life really is about more than what you own, and we need to learn to respect each other and our struggles. This doesn't go for the upper class, fuck them, they are beyond all this and will always be dicks for the most part. This is for the middle/lower class folk, because hey, we really are all in this together.

So make cuts where you can, save where you can, and most importantly keep the faith that there is a better day coming just beyond the horizon. Do that, and we'll all get there together just fine.