Weekly Reminder: The economy is great, inflation is fake and gas is cheap.

[Brown Down]

Credit card debt smashed another record high at the end of 2023

Credit card debt surpassed another record at the end of December as American consumers continued to rely on their cards to pay for everyday necessities.

www.foxbusiness.com

Some people will never get debt-free in their lives. It's scary when you actually think of how much o you pay in interest on credit cards

 

[Babagounj]

Some people will never get debt-free in their lives. It's scary when you actually think of how much o you pay in interest on credit cards

So what's the interest amount due on $17.5 T ?

 

[Brown Down]

So what's the interest amount due on $17.5 T ?

I don't even want to try to calculate that out more than I care to think about

 

[oldngray]

So what's the interest amount due on $17.5 T ?

More now with the higher interest rates

 

[Brown Down]

More now with the higher interest rates

So I got bored and calculated it out anyway. 365 billion per month in interest alone

 

[IVE GOTTA PACKAGE 4U]

Some people will never get debt-free in their lives. It's scary when you actually think of how much o you pay in interest on credit cards

Some of these cards are pushing 30% interest

 

[Wally]

Some people will never get debt-free in their lives. It's scary when you actually think of how much o you pay in interest on credit cards

Why not a bail out like student loans?

 

[IVE GOTTA PACKAGE 4U]

Why not a bail out like student loans?

They will just go bankrupt

 

[bottomups]

So I got bored and calculated it out anyway. 365 billion per month in inte

 

[Up In Smoke]

Why not a bail out like student loans?

Did you see the new 401k option?? You can elect to have your company match go directly to pay down your student debt. Interesting concept. See what I did there??

 

[vantexan]

Some of these cards are pushing 30% interest

Some are charging 35%+.

 

[Brown Down]

Some are charging 35%+.

legalized highway robbery

 

[Babagounj]

Along with increases in credit card debt is this.

Auto loan delinquencies spiked last year in troubling sign for economy

The number of auto loan borrowers who are falling behind on their bills jumped during the fourth quarter as high borrowing costs squeeze millions of Americans.

www.foxbusiness.com

 

[bottomups]

Along with increases in credit card debt is this.

Auto loan delinquencies spiked last year in troubling sign for economy

The number of auto loan borrowers who are falling behind on their bills jumped during the fourth quarter as high borrowing costs squeeze millions of Americans.

www.foxbusiness.com

Maybe if you can't afford a new truck you shouldn't buy one?

 

[Babagounj]

Maybe if you can't afford a new truck you shouldn't buy one?

Or that new cell phone.

 

[bottomups]

Or that new cell phone.

Check out some food pantries once in a while. People carrying bags of food out to their new SUV's. I'm supposed to feel sorry for them?

 

[Up In Smoke]

The bill eliminating tax from SSI was reintroduced on the House floor Wednesday. The bill named " You earned it, you keep it act" would eliminated tax withholding from SSI benefits and somehow extend solvency of the program for 20 years. This bill would roll back the taxes placed on SSI from 1983 and change the income levels and benefits paid. As a man getting ready to retire, this looks good to me, but where is the money coming from???

 

[vantexan]

The bill eliminating tax from SSI was reintroduced on the House floor Wednesday. The bill named " You earned it, you keep it act" would eliminated tax withholding from SSI benefits and somehow extend solvency of the program for 20 years. This bill would roll back the taxes placed on SSI from 1983 and change the income levels and benefits paid. As a man getting ready to retire, this looks good to me, but where is the money coming from???

Were the taxes collected through this going back into Social Security or going into the general fund? The problem is, if anyone isn't familiar, that the levels of income for Social Security recipients needed to trigger the tax were set at what was in 1983 high income. For example if you are single or married filing separately they take half your SS plus any other income and if that's at least $25k but less than $34k then 50% of your SS is taxed. If over $34k then 85% is taxed. There are higher income thresholds for married couples filing jointly. That was considered high income in 1983 but they never adjusted for inflation over the years. So more and more people were getting hit with taxes on their SS every year.

Extending SS solvency another 20 years comes from taxing all income above $250k. Currently the limit at which income stops being taxed for SS is around $168k. That would continue but if you make $250k or more then all income above $250k would resume having SS taxes taken out.

 

[DELACROIX]

Were the taxes collected through this going back into Social Security or going into the general fund? The problem is, if anyone isn't familiar, that the levels of income for Social Security recipients needed to trigger the tax were set at what was in 1983 high income. For example if you are single or married filing separately they take half your SS plus any other income and if that's at least $25k but less than $34k then 50% of your SS is taxed. If over $34k then 85% is taxed. There are higher income thresholds for married couples filing jointly. That was considered high income in 1983 but they never adjusted for inflation over the years. So more and more people were getting hit with taxes on their SS every year.

Extending SS solvency another 20 years comes from taxing all income above $250k. Currently the limit at which income stops being taxed for SS is around $168k. That would continue but if you make $250k or more then all income above $250k would resume having SS taxes taken out.

Another factor for those on a fixed income is of course the out of control inflation rates caused worldwide but also the continuing increases in their property tax and home owner’s insurance, last year mine increased 60,000, 3 bedroom, 2 bath, 1800 sq foot … those seniors with larger houses or acreage are now forced to leave their homes even if they were paid off years prior.

Isn’t there still a 165 dollar payment to cover your funeral costs…that is a pure indicator that the system needs updating.

 

[vantexan]

Another factor for those on a fixed income is of course the out of control inflation rates caused worldwide but also the continuing increases in their property tax and home owner’s insurance, last year mine increased 60,000, 3 bedroom, 2 bath, 1800 sq foot … those seniors with larger houses or acreage are now forced to leave their homes even if they were paid off years prior.

Isn’t there still a 165 dollar payment to cover your funeral costs…that is a pure indicator that the system needs updating.

Can't imagine how many decades ago $165 would cover funeral expenses!