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In a world where inflation >0%, wouldn't we expect almost every day to set a record for "most debt ever"?
by Rebelgecko 4y ago
In a world where inflation >0%, wouldn't we expect almost every day to set a record for "most debt ever"?
- zzleeper 4y agoYep. A consequence of decades of low inflation is that most people still think in nominal terms. Otherwise they would be calling out journalists for these silly hesdlines
- yucky 4y agoFrom the article: > Year over year, credit card balances grew 15.2% That is quite significant and does not track with inflation.
- Rebelgecko 4y agoPerhaps,but not surprising given the prevailing interest rate situation. I got multiple offers on my CCs to lower the APR to 0% for 12-18 months. At that point it's financially better to carry a balance, throw the cash in a HYSA and pay it off in 2024. My Own CC balance has grown by like 600%
- loeg 4y agoYeah, but total household debt only grew 7%, which approximately tracks with inflation. Similarly, inflation is measured over a basket of goods, some of which grow in price more slowly than others -- not exclusively the goods paid for on credit cards.