6 ms·

Americans’ household debt surpasses $16T for first time

16 points by fairytalemtg 4y ago

credit_guy 4y ago
This information, without the information about Americans' household assets is quite useless. It's just designed to scare. If the total debt is $16T, and the total assets $1.6T, you have all the reasons to be worried. But if the total assets are $16T, maybe not so much. What if the total assets are $160 T? Wait, $160T? Does such a number even exist? Yep, it exists. It's the total assets of the American households. Or more precisely, $158.8T [1] [1] https://fred.stlouisfed.org/series/BOGZ1FL192000005Q https://fred.stlouisfed.org/series/BOGZ1FL192000005Q
- anm89 4y ago
  Now let's compare how much of those assets belong to the bottom third compared to how much of the lomg term revolving credit belongs to the bottom third. Wait, 100M people are screwed? Wait, my condescending faux casual tone is intentionally used to mislead and dismiss a serious problem?
  - credit_guy 4y ago
    > Now let's compare how much ... Sure, do you have the numbers?
  - vt85 4y ago
    [dead]
dzonga 4y ago
this is a timebomb most people wish to forget out of existence. personal debt levels almost nearing 1 to 1 with GDP. a gvt can print money, household's can't. something gotta give. and most americans have been living under the illusion that using a credit card is normal whereas most european countries well up until the recent cost of living crisis - most people can get by with normal salary without borrowing except for a mortgage. personally, I wonder what the effects will be like when everyone defaults. maybe we need to bring back a debt forgiveness holiday
- newaccount2021 4y ago
- floxy 4y ago
  The Fed report is a lot more interesting: https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2022Q2 https://www.newyorkfed.org/medialibrary/interactives/househo... ...looks like credit card debt is pretty stable since 2003 at just under $1 trillion (page 10).
  - rightbyte 4y ago
    EDIT: My head hurts 10e12/320e6 = 31250 USD/person That is quite a lot at credit card interest.
    - floxy 4y ago
      $1 trillion = 10^12 = 1e12. 1e12/320e6 = $3125 per person for just the credit card debt portion.
      - rightbyte 4y ago
        Oh ... I might need to do a high school math refresher soon. The number sounded a bit silly.
        imtringued 4y ago
        $300 interest (the cards I have access to charge 10%) per person is still ridiculous. Credit cards aren't meant to have a balance for long unless it is some odd 0% financing scheme.
        aaaaaaaaata 4y ago
        > Credit cards aren't meant to But...they can. So they will.
alexfromapex 4y ago
Will politicians do anything about it though? For years I’ve watched in astonishment as they do nothing for healthcare, education, daycare, or housing costs.

16 points by fairytalemtg 4y ago

This information, without the information about Americans' household assets is quite useless. It's just designed to scare. If the total debt is $16T, and the total assets $1.6T, you have all the reasons to be worried. But if the total assets are $16T, maybe not so much. What if the total assets are $160 T? Wait, $160T? Does such a number even exist? Yep, it exists. It's the total assets of the American households. Or more precisely, $158.8T [1] [1] https://fred.stlouisfed.org/series/BOGZ1FL192000005Q https://fred.stlouisfed.org/series/BOGZ1FL192000005Q

anm89 4y ago
Now let's compare how much of those assets belong to the bottom third compared to how much of the lomg term revolving credit belongs to the bottom third. Wait, 100M people are screwed? Wait, my condescending faux casual tone is intentionally used to mislead and dismiss a serious problem?
- credit_guy 4y ago
  > Now let's compare how much ... Sure, do you have the numbers?
- vt85 4y ago
  [dead]

dzonga 4y ago

this is a timebomb most people wish to forget out of existence. personal debt levels almost nearing 1 to 1 with GDP. a gvt can print money, household's can't. something gotta give. and most americans have been living under the illusion that using a credit card is normal whereas most european countries well up until the recent cost of living crisis - most people can get by with normal salary without borrowing except for a mortgage. personally, I wonder what the effects will be like when everyone defaults. maybe we need to bring back a debt forgiveness holiday

newaccount2021 4y ago
floxy 4y ago
The Fed report is a lot more interesting: https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2022Q2 https://www.newyorkfed.org/medialibrary/interactives/househo... ...looks like credit card debt is pretty stable since 2003 at just under $1 trillion (page 10).
- rightbyte 4y ago
  EDIT: My head hurts 10e12/320e6 = 31250 USD/person That is quite a lot at credit card interest.
  - floxy 4y ago
    $1 trillion = 10^12 = 1e12. 1e12/320e6 = $3125 per person for just the credit card debt portion.
    - rightbyte 4y ago
      Oh ... I might need to do a high school math refresher soon. The number sounded a bit silly.
      - imtringued 4y ago
        $300 interest (the cards I have access to charge 10%) per person is still ridiculous. Credit cards aren't meant to have a balance for long unless it is some odd 0% financing scheme.
        aaaaaaaaata 4y ago
        > Credit cards aren't meant to But...they can. So they will.

alexfromapex 4y ago

Will politicians do anything about it though? For years I’ve watched in astonishment as they do nothing for healthcare, education, daycare, or housing costs.