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How is there more cheap consumer debt now than 20 years ago?
by ProjectArcturis 5y ago
How is there more cheap consumer debt now than 20 years ago?
- jkhdigital 5y agoThe answer to this question seems so self-evident that I’m not sure if you’re trolling or really just uninformed. To be fair, aggregate debt and interest rates don’t really tell the whole story, because credit providers are a lot more creative as well. Anecdotally, I routinely get offers for promotional low- or no-interest balances on unsecured credit (i.e. credit cards) that overlap such that I can fairly easily maintain a condition of “negative working capital” in excess of my annual income for maybe 2% APR.
- ProjectArcturis 5y agoI'm not the one who's uninformed. Total consumer credit as a share of GDP was 18% in 2001 and is 19% now. Those offers aren't new either. They were around 20 years ago. And back then you could stick the balance in a savings account to arb a few percent positive interest.