Americans’ credit card debt levels have just notched a new, but undesirable, milestone: For the first time ever, they’ve surpassed $1 trillion, according to data released Tuesday by the Federal Reserve Bank of New York.

  • eek2121@lemmy.world
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    1 year ago

    I admittedly haven’t looked at the article, but they are likely measuring based of a fixed snapshot in time, which tells you zero about the actual debt.

    Example: at any given point in the month I have 5 figures of CC debt, but I always pay every card in full each month (I never carry a balance) and have enough money to zero everything out if something happens. Because of this it looks like I have high debt load when I really don’t. I do this because it simplifies payments, allows me to collect rewards, keeps my bank account/debit card out of mainstream use (which helps prevent my account info from getting stolen/misused) and allows cash to stay in my accounts just a bit longer earning that sweet 5% interest.

    That being said, not everyone does that and many folks are likely in over their head.

      • dmtalon@infosec.pub
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        1 year ago

        Ally is at 4.25% straight up saving account Vanguard Treasury Money Market VUXSS is at 5.15% right now.

        There are a few online only banks that are above 5% also.

      • eek2121@lemmy.world
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        1 year ago

        Fidelity has a number of funds around 5%. A fidelity brokerage account auto invests in SPAXX, which is 4.96%. SPRXX is 5.02%. These accounts are insured, and the cash is completely liquid, a debit card tied to this account works normally, for example.

      • snooggums@kbin.social
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        1 year ago

        When you already have a bunch of money you get higher rewards and pay lower interest so your money flows through their balance sheets.