Drowning in Debt?

NBC's Rory O'Neill reports that 1 in 4 Credit Card holders say will never be able to get out of Credit Card debt!

Episode Transcript

Speaker 1 (00:00):
Statistics come out and they show that apparently one in
four credit card holders in the United States don't listen out,
don't think they will ever get out of credit card debt,
which Roy O'Neill leads me to question the logical processes
of the American people.

Speaker 2 (00:16):
How are you, I'm doing well, Chuck, Yeah. You know
half of us, almost half have monthly credit card balances.
We don't pay it off every month, about half of us,
and about a quarter of those folks say, you know what,
I don't think I'm ever going to pay this off.
You know, twenty eight percent of Americans, according to the
bank Rate survey they came out this morning, say they
use their credit cards for day to day expenses, the groceries,

(00:38):
the childcare, the utilities. That's a real red flag because,
as you know, those credit card rates are twenty twenty
five thirty percent even, and really you never get off
from interest rates like that.

Speaker 1 (00:50):
The idea that you would go into a debt believe
this is a I understand max and out credit cards.
I got a house full of people that consume cons
I get it. I'm so underwater sometimes all my credit
cards should have like scuba equipment on them, I get,
but to do that and go I'll never pay this off.
I don't get that part. Anytime you incur debt, it

(01:12):
has to be with the anticipation of being able to
pay it off. That's that's kind of a dismal outlook.

Speaker 2 (01:17):
Oh no, no, no, I'm thinking misunderstand they'll never be
able to pay it off. Not that I won't pay
the bill, but I'll just never be able to. Oh
my gosh, there's so much debt. I'll never get down
to a zero balance.

Speaker 3 (01:29):
Yeah, but you gotta go into the debt with some strategicy,
don't you. I mean, come on, does it seem to
be a conscious choice of people. Are they just so
so crazed about getting their flight points or something like
that that they're not even thinking it through, or are
they doing this consciously?

Speaker 2 (01:47):
Well, about forty five percent of the people who have
debts say it's from emergency or unexpected expenses car repairs,
medical bills, home repairs. You know, so rather than taking
the vacation or buying a handbag. Most nearly half say
this debt is from these unexpected things. The water heater went,
I need four new tires, that kind of thing, and

(02:09):
that's where they feel that once the attacks on and
you just got almost through paying for the water heater,
here come the car tires and you're like, I'll never
get this paid off.

Speaker 1 (02:18):
The game of life, it happens, and you have to
anticipate it. I mean, if you've got a big credit
card debt because you decided you were going to take
the family on a vacation first time in five years,
I want to take the kids to you know, Disney
before they're too old to care or something like that.
I can forgive that process, but to go into it

(02:40):
without a plan and a belief that you're going to
pay this thing off, right, unless it's an absolute life
and death thing, it just defies logic to me.

Speaker 2 (02:49):
Well, yeah, and understandably. But I said, the red flag
is the fact that twenty eight percent need to go
into credit card debt to pay monthly bills. I mean
that means that there are a big, serious situation at
that household. Either income has dried up or you know,
whatever reason, the expenses are out of control. But that's

(03:10):
the question of you know, change your housing, change your
car situation. You know, if you're putting the groceries on
the credit card bill figure out something else.

Speaker 1 (03:18):
Are the banks turning the screws here as well? Because
I have noticed the mailbox lately we go in this
economic circle, I've noticed my mailbox lately like hey, please,
you're pre approved, you're pre qualified. I seem to be
getting a lot of that lately. Is that are the
banks picking up on trying to get people into further debt.

Speaker 2 (03:36):
Well, we have seen delinquency rates chick up a little bit,
so that's also been an issue that people aren't paying
those bills, so they are getting more and more delinquent.
But look, these interest rates have you know, been at
high as we haven't seen if ever. So yeah, this
is turning into a total cash cow for these big
credit card issuers. When I was talking to another station

(03:56):
a minute ago, he said, I got an offer for
a credit card at thirty I presise interest