FYI: Canadians' credit card debt

[bcbgboy13]

http://news.sympatico.msn.ctv.ca/TopStories/ContentPosting.aspx?feedname=CTV-TOPSTORIES_V2&newsitemid=CTVNews%2f20071113%2fcredit_debt_071113&show=True&number=5&showbyline=True&subtitle=&detect=&abc=abc

[Octavius]

A new study of Canadians' credit debt finds that a whopping 25 per cent owe between $10,000 and $40,000, and 28 per cent don't even know the interest rate they pay on their main credit card.


People who carry balances on their credit cards are idiots unless they're getting an excellent interest rate (like anywhere from 0%-10%). I consider an "excellent" interest rate comparable to the rate you would get for an unsecured LOC at a bank

Although I'm sure most people on this forum don't fall under this "25%" category, the fact that so many Canadians do (and clearly have little knowledge about this finances and their relationship with their banks) scares me.

Better them then me though. My credit cards have been making me money thanks to 2%-3% Cash Back cards I've got. In the past year and a half I've saved over $1500.00

[netriones]

50 per cent said they pay their credit card off in full every month.

That's not bad.

[gman]

People who carry balances on their credit cards are idiots unless they're getting an excellent interest rate (like anywhere from 0%-10%). I consider an "excellent" interest rate comparable to the rate you would get for an unsecured LOC at a bank

Although I'm sure most people on this forum don't fall under this "25%" category, the fact that so many Canadians do (and clearly have little knowledge about this finances and their relationship with their banks) scares me.

Better them then me though. My credit cards have been making me money thanks to 2%-3% Cash Back cards I've got. In the past year and a half I've saved over $1500.00

We should thank these 'idiots'. Without them, you and I will not get any reward from the CC. Think about it. If the CC company does not earn huge amount of money from them, they will charge us transaction fee like the bank does with bank account.

[Octavius]

We should thank these 'idiots'. Without them, you and I will not get any reward from the CC. Think about it. If the CC company does not earn huge amount of money from them, they will charge us transaction fee like the bank does with bank account.

Oh, I do thank them :D

People are big boys and girls and make their own decisions. People like us just happen to make better decisions than they do.

[Jacklad]

People who carry balances on their credit cards are idiots unless they're getting an excellent interest rate (like anywhere from 0%-10%). I consider an "excellent" interest rate comparable to the rate you would get for an unsecured LOC at a bank

All my credit card debt is at lower rates than either my LOCs or my mortgages, so that's where my balances are. In fact, it's all at 3.9% or lower (currently balance transfered at 1.9%), so even my savings are left sitting where they are as making more than I am paying. (I make the 3.9% statement because my CIBC Visa may have a high rate, but they send 3.9% convenience cheques *every* month.)

One of my cards (Capital One) is $10k with a permanent rate of 4.9%. (Oddly enough, they're the only card that isn't constantly raising my credit limit. :razz:) But most cards have a regular rate of 18% or over, and store cards around 28.8% - if people don't realize that they are paying that much, they must not read their statements.

Jackie

[Shadow Rider]

People who carry balances on their credit cards are idiots unless they're getting an excellent interest rate (like anywhere from 0%-10%). I consider an "excellent" interest rate comparable to the rate you would get for an unsecured LOC at a bank

Although I'm sure most people on this forum don't fall under this "25%" category, the fact that so many Canadians do (and clearly have little knowledge about this finances and their relationship with their banks) scares me.

Better them then me though. My credit cards have been making me money thanks to 2%-3% Cash Back cards I've got. In the past year and a half I've saved over $1500.00

Which credit cards pays back 2-3% in cashback?

[simms]

Which credit cards pays back 2-3% in cashback?

You don't follow RFD? Search AMEX Gold. and Starwood.

[new_vr]

A new study of Canadians' credit debt finds that a whopping 25 per cent owe between $10,000 and $40,000, and 28 per cent don't even know the interest rate they pay on their main credit card.


You can count me in on the 28%. I never carry a balance, so I don't really care what the interest rate is

[ItemFinder]

Oddly enough, I carry a $25000 balance, but unlikely most consumers, I'm not paying any interest on my investment. I love BT offers!

[harlequin]

We should thank these 'idiots'. Without them, you and I will not get any reward from the CC. Think about it. If the CC company does not earn huge amount of money from them, they will charge us transaction fee like the bank does with bank account.

I quite agree. This reminds me of the situation with Las Vegas. There are lots of bargains with hotel room rates, buffets, etc., all subsidized by the idiots who throw away their money on games that have a huge house edge.

[nobody1234]

We should thank these 'idiots'. Without them, you and I will not get any reward from the CC. Think about it. If the CC company does not earn huge amount of money from them, they will charge us transaction fee like the bank does with bank account.

Either way, the bank would still be dinging the merchant with 2% fee or whatever it is on your purchase, and that will be factored into the purchase price.
But I'm with you, if you own stock in the people issuing that debt, it's great to have these idiots around.