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No shit. Why buy gas, food and other line items that don't change much month to month in cash if you get cashback and rewards points for putting it on a card?

No shit. Why buy gas, food and other line items that don't change much month to month in cash if you get cashback and rewards points for putting it on a card? If you have the self discipline to not spend more than you make putting everything on a card and paying it down to 0 every month makes a lot of sense. Sure you could screw up and wind up making monthly payments if you spend more than you make but that's not fundamentally any different than if you bought all the essentials in cash then put the rest on credit. The article is intentionally misleading by talking about people "paying for things" with credit cards and then talking about credit card debt (no mention of how much gets paid back before the end of the month) implying that the month to month balance people are carrying is a result of necessities rather than large purchases. This entire article is one large assertion followed by flimsy support after another.

frankbreetz 7y ago
I think "credit card debt" implies they aren't paying it off at the end of each month. Also in the article, it says the average credit card debt is 6,506, this is more than the typical American can afford to pay down on their credit card each month.
- dgzl 7y ago
  > I think "credit card debt" implies they aren't paying it off at the end of each month. Maybe in the context of this article, but that's not what it logically means.
izzydata 7y ago
Are they considering all credit as debt? I don't think credit that gets its full balance payed on time is debt. Once you pay interest on a balance it becomes debt.
- Simon_says 7y ago
  Your definitions don't match conventional understanding.
  - izzydata 7y ago
    Well that doesn't tell me much of anything, but I love that sentence.
    - dgzl 7y ago
      Credit is having the ability to obtain debt. Once you use the credit, you have debt, regardless of when or if you pay it off.
      - kazinator 7y ago
        You're not in debt if at all times while you are using this credit, you actually have the cash to pay it off. Then you're using credit for convenience, not as a loan because you don't have money. People using crdit strictly for convenience, always paying their bill within the interest-free grace period, are not in debt (on account of that credit card). Even people with significant loans are not necessarily in debt. If you borrowed $300K to buy a $400K home that is now worth $500, you still have a loan, but that is offset by equity in the property. It's not the same as borrowing to buy food, which is consumed and gone.
        dgzl 7y ago
        Is this fact? Because my intuition is making me believe you're wrong. If you're successfully paying off your CC, then what are you paying off if it's not debt? IMO, to be in someone's debt means you have to pay them back, which is regardless of what cash you have. Are you trying to say that if I borrow money from someone and I actually have the cash to pay them back, then I'm not actually in their debt?
        izzydata 7y ago
        I don't know, but one of these two things is not a useful metric for what this article is trying to claim.
        kazinator 7y ago
- deleted 7y ago
  [deleted]
jetrink 7y ago
In fact, there are several cards that give extra points or cash back when used at grocery stores and gas stations.

frankbreetz 7y ago

I think "credit card debt" implies they aren't paying it off at the end of each month. Also in the article, it says the average credit card debt is 6,506, this is more than the typical American can afford to pay down on their credit card each month.

dgzl 7y ago
> I think "credit card debt" implies they aren't paying it off at the end of each month. Maybe in the context of this article, but that's not what it logically means.

izzydata 7y ago

Are they considering all credit as debt? I don't think credit that gets its full balance payed on time is debt. Once you pay interest on a balance it becomes debt.

Simon_says 7y ago
Your definitions don't match conventional understanding.
- izzydata 7y ago
  Well that doesn't tell me much of anything, but I love that sentence.
  - dgzl 7y ago
    Credit is having the ability to obtain debt. Once you use the credit, you have debt, regardless of when or if you pay it off.
    - kazinator 7y ago
      You're not in debt if at all times while you are using this credit, you actually have the cash to pay it off. Then you're using credit for convenience, not as a loan because you don't have money. People using crdit strictly for convenience, always paying their bill within the interest-free grace period, are not in debt (on account of that credit card). Even people with significant loans are not necessarily in debt. If you borrowed $300K to buy a $400K home that is now worth $500, you still have a loan, but that is offset by equity in the property. It's not the same as borrowing to buy food, which is consumed and gone.
      - dgzl 7y ago
        Is this fact? Because my intuition is making me believe you're wrong. If you're successfully paying off your CC, then what are you paying off if it's not debt? IMO, to be in someone's debt means you have to pay them back, which is regardless of what cash you have. Are you trying to say that if I borrow money from someone and I actually have the cash to pay them back, then I'm not actually in their debt?
        izzydata 7y ago
        I don't know, but one of these two things is not a useful metric for what this article is trying to claim.
        kazinator 7y ago
deleted 7y ago
[deleted]

jetrink 7y ago

In fact, there are several cards that give extra points or cash back when used at grocery stores and gas stations.