Big debt in December means.....?

[neirbod]

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Interesting article on consumer spending this holiday season. We sepent a lot, which of course is generally good, but we did a record amount of spending on our credit cards. What does this mean as people start to get their bills in January? Could lead to some weakness:

http://money.cnn.com/2004/12/28/news/economy/holiday_creditspending/index.htm

I may put some funds into G in early January in anticipation of a possible downturn. I may go for something like 50% G and 50% I. Still debating this move, and would appreciate others' thoughts.

Dave

 

[Brak]

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For instance, the average U.S. household currently carries about $14,000 in credit card debt, according to Cambridge Credit Counseling Corp.

What would be the minimum payment on something like that?

 

[neirbod]

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I believe most credit cards have a minimum payment of 2-3% of the balance. That translates into $280-420 per month on a balance of $14,000. That's pretty significant for most people.

 

[tsptalk]

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neirbod wrote:

Interesting article on consumer spending this holiday season. We sepent a lot, which of course is generally good, but we did a record amount of spending on our credit cards. What does this mean as people start to get their bills in January? Could lead to some weakness:

http://money.cnn.com/2004/12/28/news/economy/holiday_creditspending/index.htm

I may put some funds into G in early January in anticipation of a possible downturn. I may go for something like 50% G and 50% I. Still debating this move, and would appreciate others' thoughts.

I will probably also lighten up some time in January, but not because of the credit card issue. The spending in December will result in strong earnings reports announced in January which should get the market excited again. That's when we may want to pull the plug. Sell the good news. We won't see the ramifications of the debt until down the road in my opinion.

 

[Rod]

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We're credit card debt free... how about you?:^

 

[grandma]

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me tooooo! & have been for several years!!!...thanks to Larry Burkett's Crown

Financial Ministries :!

 

[jeeperspeepers]

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Me too........ Except I occasionally take advantage of the 0% interest promotions for home projects.

 

[Mike]

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My balance is paid in full each month.

 

[Spaf]

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You guys and gals are absolutely correct.

For a reference amazon.com has a book by Suze Orman titled "The 9 Steps to Financial Freedom". Not a big book, and it's easy reading.

Rgds. Spaf

 

[neirbod]

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I've been taking out cash advances onmy Visa card to fund my TSP account. Is this a bad idea?

 

[Spaf]

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neirbor.........Capital One is liable to steal your idea.