Credit card swiping in America

There is such a joke on the internet. In 2008, a foreigner brought $6,543,800+to China, took out $400,000 to buy a suite, and spent the remaining $600,000 on eating, drinking and having fun. Three years later, the foreigner sold his house and prepared to return to China. At this time, the house price has doubled. Finally, he ate and drank for free for three years and brought back millions.

I don't know if this joke is true or not, but in reality, this kind of operation is really common, and Americans have done this kind of thing in the past.

Generally, this kind of thing is common in other developing countries as long as the United States cuts interest rates, mainly because there are too few investment opportunities and low interest rates in the United States. Therefore, as soon as the interest rate decline cycle appears, many American capitals will lend a lot of money to invest in developing countries.

With the inflow of foreign capital, enterprises, property markets and stock markets in developing countries will prosper. When everyone has money, they will increase their investment, which will further push up asset prices?

However, if the dollar raises interest rates, foreign capital is cashed in at a high level and developing countries withdraw, it will leave a mess.

In other words, once the dollar raises interest rates, it is easy to drag other countries down (see the previous article for specific reasons). So other countries have been afraid of the dollar raising interest rates.

The interest rate hike by the US dollar has a great impact on other countries. Is there any negative effect on them in America?

As the interest rate of the US dollar rises, the yield of US debt rises, and the cost of borrowing in the United States also rises, putting pressure on American families and enterprises. For example, as interest rates rise, the cost of buying cars, credit cards and corporate loans in the United States becomes more expensive.

Let's talk about the relationship between US dollar interest rate hike and US debt: When the Fed raises interest rates or hints that it will raise interest rates soon, it means that the coupon rate of bonds issued in the future will be higher and higher. At this point, investors may be inclined to sell government bonds.

To put it bluntly, it is because the yield of US debt is relatively stable and almost risk-free. If the yield of this low-risk product suddenly increases, it will inevitably attract a lot of money to buy.

It is said that up to now, the yield of American debt is still rising, and the yield of American debt benchmark 10 has risen to 2.704%.

However, with the rise in the yield of American debt, the cost of buying a house in the United States has also risen sharply, while the demand for buying a house in the United States has gradually declined.

For example, when the Federal Reserve did not raise interest rates at the beginning of the year, the average interest rate of 30-year mortgage in the United States was basically around 3%. Now, this interest rate has risen to 4.72%.

To this end, many Americans who want to buy a house but feel that the interest cost is too high say, "I can only hope that the market collapses."

At the same time, the rise in interest rates has also increased the repayment pressure of buyers. From June+10, 5438, middle-income families in the United States generally needed to spend 34.2% of their total income on mortgage loans for middle-priced houses, compared with less than 30% last year.

In addition to mortgage loans, the sharp rise in US bond yields has further raised the interest rates of some debts. For example, car loans, corporate loans, credit cards, etc.

At present, the average interest rate of five-year new car loans in the United States has reached 4.2 1%, up 0.4% from the beginning of the year.

In the past, the United States gave people a lot of money because of the epidemic, but after such a long time, the subsidies received by American middle-class families under the stimulus policy were basically spent.

But at present, the income is unchanged, but the interest rate of mortgage car loan is rising. Because of this, American consumers can only make up for the gap by overdrawing their credit cards and paying extra mortgage and car loans.

For example, this year, the United States has set off another credit card consumption frenzy. In February alone, the revolving credit card debt in the United States soared to $654.38+08 billion, six times higher than that in June.

If the debt of robbing Peter to pay Paul continues to rise, Bank of America is likely to tighten credit in the future.

If the United States issues loans at an interest rate higher than the market interest rate, or even refuses to issue loans, then

Therefore, the US dollar interest rate hike was originally intended to solve the problem of high inflation and low liquidity in the United States. However, if it is not well controlled and there are too many complicated uncertainties, it may also cause a serious economic recession in the United States.

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Related Questions and Answers: Related Questions and Answers: I want to know how you bought a house with a credit card, and how did you finally pay back the credit card and mortgage? The following answers are not absolute and may not be applicable to everyone. It's just personal practice. Don't spray if you don't like it!

I am a junior in 20 16, and I am an intern in Shenzhen. My parents called me back and said they would buy me a suite and put it in my name! At that time, the down payment was 500,000 yuan, the loan was 6.5438+0.08 million yuan, and the monthly payment for 20 years was 7,000 yuan!

At that time, the internship was only four months, and the after-tax salary was more than 6 thousand per month. I can't afford it at all. It was my parents who paid the money on my card for me!

Later, I came out to work, although I had some savings, but I didn't pay a penny mortgage when I fell in love. It was all up to my parents!

At that time 18, I had six credit cards, Ping An, China Merchants, Shanghai Pudong Development Bank, Xingye, Minsheng and CITIC, with a total credit line of 2 10000, and each card was generally over 30,000!

As a college graduate who has just entered the society, why can he get such a high credit card? In the final analysis, it is because I have a mortgage house, and the monthly payment is relatively large!

Later, these six cards were all real money, and there was also a machine-raised card, which rose from 2 10000 to 460000 now, and two of them rose to 10000!

But I didn't use the money to pay off the mortgage, because my parents were both in business and didn't die like office workers, so they are still here!

The real repayment starts from 19. I made an appointment for partial repayment and got together with my family. I paid back 450 thousand, because more than half of the 7000 mortgage is interest, which is really unbearable!

After paying back 450,000 yuan, the monthly payment has become 3,800 yuan, which makes me feel a lot less stressed, but the loopholes in the credit card are getting bigger and bigger. At this time, I began to officially repay the mortgage. Thank you very much for giving me so much help!

In the days to come, I can only work hard to pay it back. I work in an insurance company in the morning, help with business at home in the afternoon, chat with customers in the evening, talk about business, and sit on the Internet as a part-time job when I get home.

All kinds of software classified on mobile phones are designed to fill the gaps in credit cards!

Later, in 19, in June of 5438+00, I got married, which was another big expense. Bought three gold, furniture, wedding, hotel, etc. After deducting the collected molecular money, I still owe more than 80 thousand credit cards.

In those days, while paying the mortgage and supporting my family, I filled out my credit card, which really collapsed. I often tell my parents to sell a small apartment invested in the city, but things are not as smooth as expected!

Later, when the epidemic broke out in February, I collected some money and paid off a mortgage of 200,000 yuan with my credit card. Now there are more than 300 thousand principal left, and now it is 2294 yuan a month!

Although looking back at this road, it is very difficult. While constantly cashing in to fill the mortgage, we must work hard to make money. Anyway, dead wages are definitely not enough, because there is an upper limit to the work of selling physical strength and time. I can only choose the sales industry, so my income is not capped!

When you really start doing it, you will find that the process is very painful, but the scenery you have survived is beautiful!