what recession

[Chicago526]

I think this Christmas will be the last "hurrah" for retail sales. I think the credit lines are about maxed out, and most people are shoping for Christmas only because of their kids. Once January hits, those cards will be maxed out or cut up, and the poop is going to hit the fan at that point.

Heck, DH and I are doing fine and we are halting all unnessesary spending come Jan 1. Once Christmas is over and our bath remodel is done, we aren't spending a dime on anything until summer, at that point we'll look and see how things are, and then decide if we want to go ahead with more remodel projects. Meanwhile, we're doubling our efforts to pay down some debt we have.

 

[islandmum]

That's a big number . . . where did you get it?

it was one of those business programmes in the UK - like I say dont quote my actual figures but it was in that ball park - very very high.

 

[kydisneyfans]

I think this Christmas will be the last "hurrah" for retail sales. I think the credit lines are about maxed out, and most people are shoping for Christmas only because of their kids. Once January hits, those cards will be maxed out or cut up, and the poop is going to hit the fan at that point.

Heck, DH and I are doing fine and we are halting all unnessesary spending come Jan 1. Once Christmas is over and our bath remodel is done, we aren't spending a dime on anything until summer, at that point we'll look and see how things are, and then decide if we want to go ahead with more remodel projects. Meanwhile, we're doubling our efforts to pay down some debt we have.

Don't forget that tax season starts in January. With many people with reduced incomes, the EIC amounts will be higher, putting more $$ into pockets the first quarter of 2009. I think spending will slow significantly, but the money flow should start back soon after.

 

[Lib E]

Don't forget that tax season starts in January. With many people with reduced incomes, the EIC amounts will be higher, putting more $$ into pockets the first quarter of 2009. I think spending will slow significantly, but the money flow should start back soon after.

With the skyrocketing COL, not much of that EIC money will be spent on the stuff that boosts the economy.

 

[CPT Tripss]

there is a statistic somewhere - dont quote me on these figures but they're in the ball park) - that if you owe $3000 plus dollars on a CC and the interest is above 15% and you just pay the minimum payment each month .... you will NEVER pay it off!

And over 80% of CC holders - I think its nearer 90 actually - pay the minimum amounts each month.

Your numbers look way overstated based on this - http://www.sciencedaily.com/releases/2008/10/081006130542.htm - 35% of card holders do not make full payments.
And even more over stated based on this - http://www.cbsnews.com/stories/2006/01/06/earlyshow/contributors/raymartin/main1184663.shtml - says 13% make the minimum payment . . . that's a long way from what you are saying.

 

[islandmum]

Your numbers look way overstated based on this - http://www.sciencedaily.com/releases/2008/10/081006130542.htm - 35% of card holders do not make full payments.
And even more over stated based on this - http://www.cbsnews.com/stories/2006/01/06/earlyshow/contributors/raymartin/main1184663.shtml - says 13% make the minimum payment . . . that's a long way from what you are saying.

that may well be the case in the US .... I didnt say US

plus those stories are over 2 years old - the programe I watched was 3 weeks ago - far more current state of affairs. It was based on a population survey and did not include business CC's which make up a huge amount of the 'clear it every month' section.

it is also interesting that throughout the people I know - the wealthier ones have one CC (possibly 2) which they pay off monthly only.

my friends who economically are the worst off have the most cards - some up to 6 or 7 - and pay the minimums, once they're maxed they get a new one and do the same, paying them all at the minimum rates.

they think we're mad having one and paying it off - they think they're winning by paying the minimum

 

[crashbb]

that may well be the case in the US .... I didnt say US

Which country were you referring to?

 

[Colleen27]

With the skyrocketing COL, not much of that EIC money will be spent on the stuff that boosts the economy.

The question is if/how much of it will be spent at all. I know many families who count on tax returns to pay off their Christmas debt, and others who work seasonal jobs and count on that money to pay off the bills that they fall behind on over the slow winter months. That's not going to help jumpstart the economy, and I think more families than ever will be applying their EIC to bills or debt this year.

 

[arminnie]

Your numbers look way overstated based on this - http://www.sciencedaily.com/releases/2008/10/081006130542.htm - 35% of card holders do not make full payments.
And even more over stated based on this - http://www.cbsnews.com/stories/2006/01/06/earlyshow/contributors/raymartin/main1184663.shtml - says 13% make the minimum payment . . . that's a long way from what you are saying.

The majority of cc holders DO NOT just pay the minimum. Over 50% pay it off monthly. I am being a little vague here on purpose as my sources are confidential internal documents for a major international cc company.

It is okay for me to give a generalization - but not to give out more specific numbers. This is international but does not include the quarter that will end this month (obviously).

Most people do assume that what those around them are doing is what is happening in general. I remember years ago being shocked that the average cc use per month was less than 4 transactions. I could use mine that much in a day.

Virtually no one who works for a cc company (not a bank) carries a balance on a cc card.