Comments on: 4.81% of Credit Card Accounts Are Late

By: John

John — Fri, 30 Sep 2005 21:48:38 +0000

“I don’t consider home equity savings because it’s at the whim of the market. I think savings is an active rather than passive process. Although I have to say that pre-paying a mortgage, etc should be considered some sort of savings, since that is an active measure to increase net worth.”

Equity in the house and how much of a mortgage is left is pretty much the same thing.

By: Lauren

Lauren — Fri, 30 Sep 2005 12:51:36 +0000

I don’t consider home equity savings because it’s at the whim of the market. I think savings is an active rather than passive process. Although I have to say that pre-paying a mortgage, etc should be considered some sort of savings, since that is an active measure to increase net worth.

I have a feeling that a lot of the people late on their credit cards this month are the ones who shelled out more than they should have on some big gas-guzzler during the recent employee-discount sales, or maybe those who bought them a year or so ago not thinking about the fact that gas may not stay at $1.50. So definitely not poor Americans, even though increases in staples hurt them more overall.

By: jim

jim — Fri, 30 Sep 2005 12:13:34 +0000

It’s not that they’re questionable, it’s that some people don’t agree with what they consider to be savings. I don’t believe equity in your home can be considered savings because it’s not liquid but I don’t think they consider brokerage accounts savings either and many Americans put their savings into index or mutual funds instead of a savings account. It does identify a growing trend that there are a lot of people who actually don’t save at all, not into their home, not into a brokerage account, and not into a savings account.

John believes high debt and low savings is how Americans maintain a good lifestyle…

By: Matt (different one)

Matt (different one) — Fri, 30 Sep 2005 06:17:32 +0000

The savings rate numbers are highly questionable, since they don’t count growing equity in a house as “savings”, and that’s the largest component of most American families’ net worth.

By: jim

jim — Fri, 30 Sep 2005 04:16:26 +0000

The world is a big place.

By: John

John — Fri, 30 Sep 2005 02:38:55 +0000

I really don’t understand the figures on debt and low savings rate for Americans. As a person who has no debt and at least a million in savings I don’t understand it. I’m not even counting my home. And I’m just an average guy. If the figures are correct, America is in bad shape. However, I believe the data is incorrect. I look around me and a lot of people have good homes and cars. They don’t look like they are hurting. I don’t know people who live from paycheck to paycheck. Although I know somewhere there are people living that way and there are homeless people. But segments of the population are mentally ill and there is a massive drug problem here. However, if ordinary Americans are spenting too much, it’s not a bad thing. It’s their choice. High debt and low savings is how Americans maintain a good lifestyle.