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chetanaik t1_iut04vb wrote

Reply to comment by [deleted] in US Credit Card Loans v. Personal Savings Rate [OC] by rosetechnology

>Also, cc debt tends to be highest when unemployment is low. People borrow more when they earn more. I buy that big screen TV because I feel confident I can repay it.

That's not certain. People also rely on cc debt to make ends meet. The spike in 2009 is not explainable otherwise.

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[deleted] t1_iut5i8x wrote

[deleted]

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fleebleganger t1_iutnpld wrote

That seems like a very reasonable explanation given the data we have.

If it were people putting money on CC to “get by” you’d expect it to return to something close to the prior level as a large majority of those people default and declare bankruptcy and the others pay it off as they get back to financial security.

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