Even though we are told the economy is doing great, all the evidence shows that main street Americans are struggling more and more every day. A recent report claimed that the costs of goods have risen to the point that 25% must use debt to pay for necessities, such as food.
According to a new Experian report that came out last week, Americans have an average of $6,506 in credit card debt. But some expenses are weighing much more heavily on the credit cards of the average American…
Necessities, like food and rent, are being put on credit cards. A full 23% of Americans say that paying for basic necessities such as rent, utilities, and food contributes the most to their credit card debt, according to a new survey of approximately 2,200 U.S. adults that CNBC Make It performed in conjunction with Morning Consult. Another 12% say medical bills are the biggest portion of their debt. Medical bills additionally likely contribute to the purchases of food on a credit card.
This news isn’t shocking unless you believe the mainstream media’s glorification of the false “recovery” we’ve experienced since the Great Recession of a decade ago. American households have taken on historic levels of debt, which will crush them in the next economic downturn.
Everyday expenses continue to rise, and as the shadow inflation increases, it also threatens to wipe out the middle class – what’s left of it anyway. In fact, middle-class life is now 30% more expensive than it was 20 years ago, according to a separate report by CNBC. The cost of things such as college, housing, and child care has risen precipitously: Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled, Alissa Quart, author and executive director of the Economic Hardship Reporting Project, tells CNBC Make It.
Alissa Quart, the executive editor of the Economic Hardship Reporting Project, examines the lives of many middle-class Americans who can now barely afford to raise children. Through gripping firsthand storytelling, Quart shows how our country has failed its families. Her subjects—from professors to lawyers to caregivers to nurses—have been wrung out by a system that doesn’t support them, and enriches only a tiny elite. – Squeezed: Why Our Families Can’t Afford America
It has become common to rely on debt, live above one’s means, and spend more than is made. The Federal Reserve’s money printing policy isn’t helping either, as its goal is to enrich themselves and the political elite that continues to allow the top few to impoverish the rest of America. Central banks have become the evil fire which government officials fan the flames of.
But, there has been a bit of a lack of personal responsibility running through most of the country as well. Americans spend an average of $483 a month on non-essentials such as dining out, entertainment, luxury items, and vacations, Schwab’s 2019 Modern Wealth report found. Debt reduction is a key to preparing for the next recession: which will happen, the only question is “when?”
There are several ways to reduce your debt, but it will likely require cutting spending on unnecessary things and saying no to expensive dinners in restaurants. Debt reduction is a gargantuan task, but it can be done.
In fact, credit card companies have been given more leeway in order to collect debts recently. Future Money Trends‘ James Davis suggests you avoid this by simply avoiding debt.
This is an unfortunate change to the rules, however, experiencing a call from a debt collector can be avoided by avoiding debt in the first place. When you borrow someone else’s money and do not repay it as you originally stated in the contract, you will be bothered and harassed. People are going to want their money back, and debt collectors honestly don’t care much whether you have it.
Avoiding debt also allows one to invest their own money and live a more financially free lifestyle – with zero chance they will be harassed by a debt collector who wants their money back. A debt is a liability and only by having as few liabilities as possible will one see their net worth rise and their personal wealth increase. – James Davis, Future Money Trends
Writing bad checks, to steal, or using debt, to pay?
How is that not a failed state?
Food Inflation is out of control. The cost of beef, good fish and seafood sky high. Every segment of our economy is designed to take as much wealth from our pockets as possible. What ever they can get away with, and massive taxation. The biggest cause of Food inflation is Fed subsidies in the form of food stamps. Take away all food stamp subsidies and watch food prices plummet back to affordability because it will be on a more true demand and supply playing level not subsidized. Just like college costs, and health care. Take away Fed Subsidies and watch the costs crash. Companies will have to lower their prices to be competitive to make a profit.
As far as I’m concerned, corporate welfare recipients which are called ‘capital’, ‘management’, or the ‘establishment’ are also guilty of writing bad checks, because they are incapable of holding up their end of the social bargain.
If you have gone where you were told, and did what you were told, and did not arrive at the expected outcome, some nationalized business has stolen your goods and services.
So what are the people who can’t get or don’t have credit cards using to pay for their necessities? This article is so misleading in that these people are being mischaracterized as poor helpless victims. To me, they’re either using the cc’s for the points or they just plain ole mismanage their money and live beyond their means. When are we gonna see articles that spotlight how savers live?
The problem is your labor is reduced to some bi-weekly phony IOU promissory notes issued by the fed and called cash, which is a debt instrument as well. No matter if it is a debit card or cash its all debt issued instruments. A promise to pay. lol
Coining an independent and debt free currency.
Noone steps forward and asks to be rescued.
It has been my experience that you can just quietly walk down the street, more-or-less minding your own business, and that is enough to attract a following.
If you do anything that would be interesting to a dog, a small child, or a spider monkey — that shows you are still breathing and have a pulse — some B-type will be watching.
Is it possible that they like things, just the way they are? To be in the shadow of someone or part of something bigger? What else do they actually want out of life.
I think, the 99% of people who we are trying to awaken, are actually self aware, woke, loyalists by intention.
I think you maybe missing the point in the use of credit cards
We have both credit and debit cards
We use the credit the most on purpose to get a monthly cash refund of 2 percent on all our credit card purchases
Again;
We try to put ALL our purchases on the credit card
We can earn a decent rebate of hundreds of dollars per year doing it
This could be misleading….. I use a credit card for most purchases just to get cash back and ALWAYS pay them down each month. It’s called free money!
If you are a responsible person and live within your means and know how to manage debt and pay your bills on time, then you are a good risk for credit. You can buy things with credit, have full protection for buying things on-line with a credit card, and not have to use your personal bank account debit card. Even interest rates under 10% is still cheap money. Combined I have 4 CC lines of credit, $20K in available line of credit. $10K for Lowes, get 5% off and pay it off before any interest is charged. Points, rewards, airline and rental car, hotels, etc. You need a credit card or its a huge hassle. Or just enjoy your stay-cation at home again like last summer. lol
Totally agree with you. The challenge many have is that they start putting balances on credit cards over time with many times unnecessarily then they get behind during tough times and go deeper into debt. I have college age boys and it is amazing the hard sell credit card companies do to this age group. Many parents have failed to teach their kids about economics and our education system is designed just to indoctrinate instead of teach!
TSB,
Good info!
If I read correctly a Lowes charge card “get 5% off and pay it off before any interest is charged”? I pay all my cards off every month.
Locally many establishments give Veterans a 10% discount. Lowes is one of them. Even though Lowes is a sixty mile drive for me, I’d start using them more.
BTW, the closest Home depot is 45 miles away.
If people really knew what Hawaii outside of Honolulu is really like most would not move here.
Free Shipping: Lowe’s offers all MyLowe’s customers free standard shipping on qualifying parcel orders. Non-My-Lowe’s customers get free shipping on qualifying parcel orders of at least $49. Lowe’s also offers free in-store pickup for select items purchased online.
Sign up for My Lowes. SIGN IN before ordering. You save $5.99 shipping. I order $2 items and get them by Fed Ex- free
Even for $5.99 it’s a good deal if you have a long drive. The local Lowes is within walking distance- I still use the free delivery
You get out more than you have put in?
Stan, you may think it is OK to have every purchase recorded in one place, but I don’t. Cash is more anonymous. Cashback isn’t free. You are paying with a piece of privacy.
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@Honey, there are many things I would NEVER use a credit card for which includes prep’s, firearms and ammunition. It’s none of anyone’s business. I use it mostly for food, and travel (business), which my employer reimburses me for all of it…. free money!
Stan, I have been using the c.c. for a few years, but now, the points don’t justify the hassle.
I guess I don’t spend enough to get rewarded often enough and the points for the gift card are increasing to even gain the gift card, etc.
So, open purse, get cash, avoid hassle.
I don’t even have to write a check now for the monthly statement. Less hassle with cash.
I’m not saying this is good for everyone. I would never suggest my two boys do it until they have a sustainable income stream and once they do, if they choose to use a credit card, they should always pay them off!
The best thing that could happen to American adults would be food prices going up 10X and/or their credit tapped out.
No one wants to face the facts that Americans are morbidly obese and too fucking lazy, undisciplined and stupid to even care.
Some Americans don’t need to prep food, they have enough body fat to survive an entire year without eating.
Bert, you are right that many Americans are overweight; and that losing weight is their first priority for survival. But, I’m afraid you might be part of the problem.
Obesity has many causes. Sometimes the cause is a prescription drug which is taken for disease . Sometimes obesity is caused by serious hormonal disorders.
Their is a fine line between motivating people to improve their lives, and criticizing them into giving up altogether. You are so harsh. Are you trying to help or are you motivated by some psychological problems of your own?
I have worked with people to help them lose weight and get healthier. I resent the skinny ninny finger pointers who never struggled with a weight problem thinking they are morally superior. In my experience, they are usually hurt humans projecting that hurt onto others.
And, I have seen, formerly fat people become the biggest condemning hypocrites themselves when they are just terrified that they will regain their lost pounds.
Give yourself and others a break. No one hears a broken record that just repeats the same thing over and over.
Either offer some usable information or positive suggestions or find a fat haters club.
This is a survival prepper site that reports current events because they do concern preppers.
The fact is that even obese people need to eat, eventually. And they, too, need to prepare for food scarcity.
I recommend, especially for obese people, to start a garden, eat healthy foods, store healthy foods, get more exercise; and pay no attention when people are rude. Who knows what motivates them to be so harsh.
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Honeypot, as crass as he sounds, he does have a valid point. There are some as you have mentioned but gluttony is rampant in our society today.
Nah…. that will never work…. because fat people are lazy…that’s why they’re fat!
I agree with you 100% Honeypot. I don’t get here much, but it seems no matter what the topic is? Poor old Bert is only worried about people’s weight. He reminds me of a guy we knew when we were kids. Bootlegged and stayed drunk for 40 years? Then was told he would die, if he didn’t stop drinking? After that you could not have a conversation with him without him preaching of the evils of alcohol! It was sad and funny too? One of my friends told him to just burn his house to the ground, LOL? Told him it was built with bootleg liquor money, because he had never had a real job in his life! The shut his mouth for awhile? Think poor bert is like that? Stop being mister negative, we all know the problems and issues people have. Stating your opinion on here about over weight people all the time, just makes you look sad? This country has major problems? Democrats mean to do whatever it takes to get power back? They will destroy the economy, flood the nation with illegals, you name it? Worry about the real problems and solutions ( one never vote for a democrat) and stop worrying about BS!!
This is off topic. Has anyone noticed how Drudge has gone full blown never-Trumper? More and more they are linking to MSM Trump haters like the NYT and Mediaite, and WaPo. Drudge’s headlines have a definite anti-Trump bent. I’m done with them. I’ve deleted them from my favorites. What the hell has gotten into them?
Plenty of fatties out there but they will starve to death Fat.
Unlike animals humans can’t live off their fat.
Its supplemental in a survival situation but can’t totally replace eating.
Good advice Honeypot.
Free Shipping: Lowe’s offers all MyLowe’s customers free standard shipping on qualifying parcel orders. Non-My-Lowe’s customers get free shipping on qualifying parcel orders of at least $49. Lowe’s also offers free in-store pickup for select items purchased online.
Sign up for My Lowes. SIGN IN before ordering. You save $5.99 shipping. I order $2 items and get them by Fed Ex- free
Even for $5.99 it’s a good deal if you have a long drive. The local Lowes is within walking distance- I still use the free delivery
Is anyone else tired of the Trump popup that appears
every ten seconds?
A lot of people use credit cards to pay for everything because they get airline miles or cash back. They pay it off each month and have no interest to pay. I am wondering if those folks are included in the 25% figure?
Have owned my own house since 2002. Nothing fancy. 3 bedrooms – 1 bath – bout 1/2 acre lot. Right near a river in front. Marsh/creek behind my house with no houses in view from my backyard. Lots of wildlife. Very cool. But more and more these days I wonder how much longer I can stay here. Was expecting to make double the salary I made when I purchased this place. Didn’t happen. And now price of common everyday items going up….and up. Credit card debit. Car payment. IRS payments. House needs repairs. My salary not keeping up with inflation. So, just this week I went to my bank & applied for HELOC, finally. Shoulda done that long time ago, but my mom fell last June, she went downhill from there and died this March. My mind mush for about a year and I just wasn’t paying enough attention to prices, or my budget…then my car needed an emergency repair recently. All of a sudden, like someone slapped me in the face and said “you gotta take care of all this! Now!” All I know is things creep up on each of us, expected, or unexpected, and then you gotta start doing what u gotta do.
using credit cards, even with the best plans and intentions to “do it right” is rather like a rehabilitated junkie carrying his next fix or an ex-smoker still having an unopened pack of smokes in his shirt pocket. Do some people have the will and resolve to not fall into the trap of the temptation…. sure. But most do not. Best to do the old-school way of things. Save for what you want. Live within your means. Prioritize needs over wants.
Um hello…..our currency, in its entirety is debt. We have a debt-based currency which is why we will never be above drowning level as long as the Federal Reserve is allowed to keep its charter.
It is simple to fix and could be done so in a year’s time without the scumbags losing a nickel of their wealth. However, after that year is up watch the wealth that a country can accumulate by leaving the debt-based system. These banksters have been fleecing us for far too long. We are the longest run in history under Central Stealing (banking). The CB has been abolished 5 times in this country’s history and has existed since 1913, the last time its charter was renewed (and done so illegally). That constitutes over 105 years of debt-based slavery, the logical conclusion of which we are witnessing right now. Unfortunately we are too stupid as a country to realize the real problem, much less fix it. Money isn’t hard to understand; they just make it sound complicated on purpose. The mafia couldn’t have devised a better scheme to fleece and yet a great many ill-informed morons actually protect these criminals so they can continue to steal our wealth and our future’s wealth. We get what we deserve……..sad really.