Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bill Dendy joins a CPA serve Ive Financial Planner. US
consumers have more debt, they're starting to pull back on
spending bill, but they're still trying to maintain their lifestyle,
aren't they?
Speaker 2 (00:12):
It seems that way. I mean, it seems that a
lot of folks were living paycheck to paycheck, and then
we had the bout with inflation, and things are costing
twenty and twenty five percent more, and maybe they're raises
weren't twenty and twenty five percent more, So to make
up for the shortfall, rather than revisiting need for us
versus wants and reworking lifestyle, a lot of them just
(00:34):
turned to spending down the money they had in the
bank account. And then when they ran out of money
in the bank account, they started grunning up the credit cards.
As we see, credit card rates are high, yet it
hasn't slowed the consumer down from a massy and the
highest credit card debt we've ever seen.
Speaker 3 (00:50):
You know, I understand about wanting to protect the money
that you basically lend people, but really, I mean, when
inflation was basically two percent, you still had credit card
interest rates that were forever and people who had saved
their money, they were getting nothing from the banks in return.
There's something wrong with this system overall. I mean, people
(01:13):
who get these kind of debts now to get through
a hard spot, they're never going to be able to
get out from under it.
Speaker 2 (01:20):
It's unbelievable. The credit card interest rates, and I think
I heard y'all mentioned earlier thirty four for thirty four.
Speaker 1 (01:28):
City banks sent me noticed and said, y'all, we're gonna
we've been with us, we don't care if you've been
with us for twenty five years. We're going to starting
in September, we're raising the credit card rate to thirty
four points something percent.
Speaker 2 (01:39):
Jimmy, even the mob doesn't charge that much. I mean,
this is unbelievable, but it's causing people to turn to
other sources of financing as well. Now, I think people
might should look at reducing their budget to what they
can afford on a monthly basis, But I've seen folks
rather do everything else, such as borrow from their four
(01:59):
one care a, deplete theirforro and K, turn to credit
card debt, and do other things that are not long
term healthy. And I believe that it's created for some
people's ability to go into the lending business. I've seen
a lot of folks now doing owner financing when they
sell properties because they're able to get a return. Just
as you said earlier, you can't go get on your
(02:21):
own safely, but if you have the collateral back in
the loans, rates are now higher that you can receive
by doing some owner financing or doing own independent lending.
But I think that for a lot of folks who
are doing the borrowing, the better answer is to revisit
their overall lifestyle and make sure they're not wasting money
(02:43):
or having leakage along the way. And for some it
may be having that hard conversation about what really are
the needs versus the wants and making a budget that's
more sustainable.
Speaker 3 (02:54):
Maybe do the best you can to maintain things instead
of thinking I've got to have something new.
Speaker 2 (03:00):
That's a neat in the vaunt we And I saw
that with the school shopping this year with my own kids,
when they get the long list of things they've got
to go out and buy, and it's like, yes, we
got the long list, but hey, a lot of this
we already have, and we can find other ways of
doing it than getting everything brand new. Right away, first day.
(03:21):
Not the most popular dad decisions sometimes, but sometimes the
most practical thing that can be done to save hundreds
of dollars and the item that's become almost surprisingly expensive
every year, especially if you have a couple to send
off the school.
Speaker 1 (03:39):
You know, having your dad be a CPAs a real buzzkill.
Thanks for being on appreciated CPA and sort of by
Financial Planner build DNDI.
Speaker 2 (03:51):
It's