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IPFS News Link • Economy - Economics USA

Credit Card Debt Drops to Lowest Level in 8 Years

• AP

The amount consumers owed on their credit cards in this year's second quarter dropped to the lowest level in more than eight years as cardholders continued to pay off balances in the uncertain economy.

The average combined debt for bank-issued credit cards — like those with a MasterCard or Visa logo — fell to $4,951 in the three months ended June 30, down more than 13 percent from $5,719 in the same period a year ago, according to TransUnion.


1 Comments in Response to

Comment by Ed Price
Entered on:

Except, of course, that there never was any debt associated with "credit card debt" because there never was any loan associated with "credit card debt."

When a person wants to borrow, his signed paperwork wherein he promises to repay a debt has value. If he didn't sign the paperwork, it wouldn't have value, right? If it didn't have value, he couldn't get a loan, right? So, when he gives something of value to a banker to get something of value in return, and when the banker treats it like that - something of value - and gives him something of value in return, that is called an even trade. It is barter. It is not a loan.

There never was any debt associated with the term "credit card debt." "Credit card debt" is a term that means, among bankers, an even trade. If it is not defined in legal language somewhere, it is defined by how the bankers handle it.

The above doesn't only apply to credit cards. It applies to all legal lending institution so-called debt. With regard to mortgages, Jon Stuart is using this information to help people get out from under the presumption that there is a mortgage debt.