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Subject:  Fuzzy Debt Stats Date:  1/19/2001  6:20 PM
Author:  Wilks Number:  5965 of 10421

While I agree with Bill Mann that financial institutions may be in for a huge "debt hangover", I think the following stat is meaningless:

"upward of 20% of [the gross national product in 2000--$11 trillion] at some point, was paid for by credit or debit card."

Personally, I pay for 90 to 95% of my purchases of goods and services (aside from household bills) with plastic. That's a whole lot more than 20%. But the key is that I pay my debt in FULL at the end of each billing cycle (as do most corporate card holders). Credit card companies may hate me, but their cards are just a convenient purchasing tool to me. As are debit cards, of course.

The interesting stat would be how much accrued and outstanding debt remains from the 2000 spending spree. For the credit companies, this is the kinda debt that will have them feeling intoxicated . . . and threaten to leave them hungover.

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