Credit card debt and credit card balance are the same thing.
> I don't know about others, but I always float thousands on my balance
This is the operative part. People on this forum tend to be in tech, and floating thousands is possible. A quick google search showed average US income is 60k/yr. Less 10k for taxes, less 20k for housing, that allows a float of less than 3k per year. The source previously stated an average debt of 6k, which is a balance more then the monthly income, and ergo is being carried over.
Looking for more direct data on how many Americans are paying credit card interest, I found this data:
"Half of credit cardholders surveyed in June (2024) as part of Bankrate's latest Credit Card Debt Survey said they carry balances over month to month. That is up from 44% in January – and the highest since since March 2020, when 60% of people carried debt from month to month" [1]
I thereby stand by my statement that your second paragraph was equally wrong (and equally right) as the second paragraph you were calling wrong.
Credit card debt and credit card balance aren’t the same thing, in practice.
If I had long standing debt on a credit card, I’d be paying an extremely high interest rate on that debt even with a >800 credit score.
If I have a balance that’s completely paid every month, I pay no interest on that “debt”. And while that money is floating, it’s in a 4.5% high yield savings account (Sallie Mae).
In the former situation, I am losing money. In the later, I’m making money. (Compared to paying with cash / debit).
In what percentage of total cases and to what fraction of the total balance? Please bring citations. This strikes me as a very glib, noisy, and unsupported claim.
> Credit card debt and credit card balance aren’t the same thing, in practice.
In practice, but pedanticatically speaking they are the same. If I asked, how much credit card debt do you have, you shouldn't say zero just because you likely will pay off the balance before the grace period expires.
EG:What is the balance on your mortgage? How much mortgage debt do you have? (The latter implies across all mortgages. That is the extent to which there is a distinction)
Pedantics and straw-manning aside, the main point, supported by citations - is that most americans are not paying their credit cards off, in full, every month.
> I don't know about others, but I always float thousands on my balance
This is the operative part. People on this forum tend to be in tech, and floating thousands is possible. A quick google search showed average US income is 60k/yr. Less 10k for taxes, less 20k for housing, that allows a float of less than 3k per year. The source previously stated an average debt of 6k, which is a balance more then the monthly income, and ergo is being carried over.
Looking for more direct data on how many Americans are paying credit card interest, I found this data:
"Half of credit cardholders surveyed in June (2024) as part of Bankrate's latest Credit Card Debt Survey said they carry balances over month to month. That is up from 44% in January – and the highest since since March 2020, when 60% of people carried debt from month to month" [1]
I thereby stand by my statement that your second paragraph was equally wrong (and equally right) as the second paragraph you were calling wrong.
[1] https://www.usatoday.com/story/money/2024/08/10/credit-card-...