Visa Unveils Plan To Burden Millennials With Billions In Debt

Tyler Durden's picture

For anyone concerned that $800 billion in student loans over the last decade simply won't be enough debt burden for millennials to carry, worry no more, a solution has been found.

 

Visa has come up with a plan to add infinitely more debt to millennials who are working diligently as bartenders and waiters: credit cards. Visa has even unveiled a detailed timeline by which they can accomplish the task.

The thought process is as follows:

First, Visa estimates that all of those minimum wage jobs will be adding up to $8.3 trillion in personal income for millennials by 2025.

 

Next, Visa believes that millennials use cards for 57% of their spending, making them an attractive "target" for massive amounts of additional debt credit card marketing.

 

And finally, as a percentage of total available users, millennials use revolving credit more than any other generation.

 

How long will it take to market the idea, sell the credit, and wait for the debt to pile up? Why, not soon after college of course. Visa estimates that if done properly, banks and other credit card issuers can have millennials saddled with billions in new debt by the young age of 28. The company even puts together a nice infographic to add to their excitement.

 

In summary, everyone can rest assured that while young millennials may not have their future mapped out quite yet, Visa and other institutions have that all taken care of for them - just make sure to pay that monthly interest.

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VonPumperDic's picture

 

 

Great Idea!!! Sign me up!!

zeropain's picture

what about their default rate?

JackT's picture

Do they at least get a Spider-Man towel?

tmosley's picture

Seems like we've heard this story before.

https://youtu.be/tGk5ioEXlIM?t=283 Only this time Pile lives in his mother's basement, and his huge debt burden is student loans rather than mortgage debt.
Kissy Ass's picture

Millennials. Those weak little sucks deserve what they get. Count me in on the theft!

MANvsMACHINE's picture

I love the smell of unsecured default in the morning.

Cognitive Dissonance's picture

Don't worry. There's a reason interest on savings is 0.01% and the average interest rate on CC's is nearly 20%. The defaults are paid for by the higher interest rate charged to the rest of us. If defaults go up, interest rates will as well.

I can't wait until they start charging interest as soon as the charge hits the card. No more paying off balances to avoid interest charges. They are already talking about it.

logicalman's picture

The interest rate pretty much matches the default rate.

Anyone would think it's simple math!

 

Herd Redirection Committee's picture

We abolished slavery in the 19th century. So this can't possibly be Debt Slavery, right?

Excursionist's picture

Someone tell me who it is exactly that is holding a gun to Millennials heads' and making them borrow?

 

JamesBond's picture

VISA believes that it will get away with lifelong servitude on the debt.  Wonder why that is....

Four chan's picture

cradle to grave enslavement to the jews, this century's federal reserve.

Calmyourself's picture

Our country you live in S. Korea knucklehead..   Now go rub mamasans feet..

Frozen's picture

Damn! And I just transferred all my cash advances to MyRA

glenlloyd's picture

Something tells me that Visa might not want to count their eggs before they hatch.

old naughty's picture

wouldn't Trump make a stand on this?

guess not.

Squid-puppets a-go-go's picture

the question isnt whether trump would make a stand on this - would he make a stand when visa's ass gets handed to it on a plate?

Maxter's picture

Also tell me who is holding a gun to VISA head and forcing them to lend to anybody?

It always goes both way

Excursionist's picture

Your question is akin to asking why a crack dealer sells crack.  Spoiler alert: because she's a fuckin' dealer and the demand is there.

My advice to Millennials is to forgo crack.

JamesBond's picture

An addict can walk away at free will.  The young being able to file bankruptsy is becoming a thing of the past.  That is the emerging difference between the two.

 

jb

Lanka's picture

That embedded RFID chip would look nice with a VISA logo.

armageddon addahere's picture

"An addict can walk away at free will."

Ha ha ha very funny. Have you ever known any addicts? Do you really believe that once addicted, any addict can freely walk away from an addiction, just like that?

OverTheHedge's picture

>>Spoiler alert: because she's a fuckin' dealer

She? Oddly, that seems specific. Is your dealer a lady? Or is there some underlying point I'm not getting?

ElectroGravitic's picture

Ref: Who makes Millennials borrow?

A: The designers of our current economic system.

Earth is the only planet in our galaxy where beings must pay to live on the planet they were born on.

 

 

Four chan's picture

who blanked their minds as to what they trade their time of life for? who erased gold and silver from the american consciousness?   one day it will be called treason.

Ghordius's picture

Excursionist: "Someone tell me who it is exactly that is holding a gun to Millennials heads' and making them borrow?"

this defense has a name: "Caveat Emptor"

the answer to your question is: "pressure"

pressure from ads, from cultural changes and debt, particularly US Student Debt, the Abomination of the West

your US Millennials did not get the same deal as you were offered. they were robbed of the freedom to default. once in that debt trap, which is way more personal then mortgages, it's easier to keep people in etarnal debt

FREE YOUR DEBT SERFS. RESTORE THE PERSONAL RIGHT TO DEFAULT

PT's picture

Excursionist Re "... who it is exactly that is holding a gun to Millenials heads and making them borrow?" :

Glad you asked, but I hate the answer as much as you do.  First allow me to exaggerate a scenario in order to emphasize a point:
Imagine you live in a small town where there is no credit and everyone earns $100 per week.  Everyone works and buys and sells stuff and everything is going fine.  Now imagine that same town, but everyone borrows $1000 except you.  What happens to prices? What can you afford to buy?  Now imagine the same little town but now everyone is allowed to borrow an EXTRA $1000 per week EVERY WEEK.  Except you.  You are still earning $100 per week and spending $100 per week.  Or are you?  You still have the same number of people in town, producing the same number of goods and services, but you are earning $100 per week while everyone else is BORROWING an EXTRA $1000 per week.  What is happening to prices?  What are all the numbskull borrowers telling you?  "Ooooh, I HAVE to borrow becoz prices are TOO HIGH and I can't afford to live otherwise."

I know it isn't right, but that is what is happening right now, but on a lesser scale.  Yes, no-one is holding a gun to their heads, but price competition is doing it's thing and encouraging people to borrow so they can keep up with idiots.  The system is SUPPOSED to PUNISH idiots who borrow too much but it isn't happening.  Even when idiot borrowers do get punished, often it is many years after the event and the damage is already done.  When the price of houses went bat-shit crazy back in 2000 I thought, "No worries, the prices will come down soon."  Here we are 16 years later and sure the prices plateaued back in 2008 but they are still bat-shit crazy.  So what has happened in the mean time?  My girlfriend left me 'coz I wouldn't marry her becoz I couldn't afford to buy a house to put her in (obviously my personal situation is actually more complicated than that and I am personalizing a general trend, again to emphasize a point) and face it, she was "right" "because" her biological clock simply can not wait 15 years for sanity to return to the market.

What I mean is sure, you can refuse to take on debt, but now the banksters are lending money to idiots, the idiots outbid you for goods and services and drive prices so high that you can no longer afford to buy anything unless you join them.  The idiots are supposed to go bankrupt, lose all their stuff which the sensible people then buy at auction for pennies on the dollar.  Stupid and evil banksters are supposed to go bankrupt and be replaced by honest bankers.  Instead, the idiots are using borrowed money to buy nice trinkets that send a false signal to the meat market:  "Lookit the nice things I have.  Obviously if you mate with me then your children will have a much better chance of survival".  Yep, we really are dealing with the baser instincts here.  Women are going to borrow as much money as is necessary so their children can look more successful than other children and so mate with the best genes and give them better quality grandchildren.

Who is holding "the gun to their heads"?  1.  Mother Nature.  2.  The banksters who refuse to lend responsibly.  I hate the irresponsible fuckwits as much as you do.  I want to see them pay for their irresponsible actions, both the borrowers AND THE LENDERSESPECIALLY THE LENDERS AND THOSE WHO BAIL-OUT THE LENDERS WHEN THEY SHOULD BE CLOSING THEM DOWN AND REPLACING THEM WITH RESPONSIBLE LENDERS.  The borowers are not just idiots.  They are useful idiots.  The banksters find them VERY useful for generating huge profits, whether through interest rates and fees, or through bail-outs ("Stupid borrower" = a prop that banksters use to help them beg).

The herd is stampeding.  It is not enough to stop running.  If you don't run with the herd then you WILL be trampled under foot.  But yes indeed that herd is stampeding hard and it is heading straight for a great big cliff.  Our task is to get away from that herd before it reaches the cliff.  And then you will be alone.  But at least you won't be trampled under foot and you won't go over the cliff.  It is most unfortunate that most of the herd neither sees the cliff nor even thinks about the cliff.

 

 

For the record I hold minimal debt, I do NOT condone the mob Debt mentality but I understand why the idiots don't copy me.

barroter's picture

NEVER blame the lender..they're innocent! /s

"The herd is stampeding.  It is not enough to stop running.  If you don't run with the herd then you WILL be trampled under foot.  But yes indeed that herd is stampeding hard and it is heading straight for a great big cliff.  Our task is to get away from that herd before it reaches the cliff.  And then you will be alone.  But at least you won't be trampled under foot and you won't go over the cliff.  It is most unfortunate that most of the herd neither sees the cliff nor even thinks about the cliff."

 

True, if you're caught in the herd and most of us are (not always by choice) you have to run north if the herd is heading north. I think the trick is to stay on the edges of that stampede. At least that allows you a chance to dart right or left if you see a danger coming up.  Staying dead center of the herd affords you no way to look where it's going.

 

 

PT's picture

Part of the answer is to stop using money altogether.  Barter only = you have separated yourself from the herd.  Why do we need money?  1.  Because everyone else uses it.  2.  To pay interest.  How do you acquire land without money?  What does it take to acquire land without paying interest?  How hard is it to barter in our modern, interconnected world?  It is quite difficult to separate ourselves from the herd, especially if we wish to hang onto a few mod cons.  And what does it do for your social life?

LawsofPhysics's picture

Governments force you to use money, especially if you own productivd assets. You have to pay taxes...

However, only governments that invest their capital and resources wisely will survive.  History is very clear on this.  If you and your family understand and respect real capital and the resources/assets that you physically control you will survive for generations, regardless of the government or the "fiat du jour".

novelator's picture
novelator (not verified) PT May 3, 2016 9:25 AM

I want to know how you barter the taxes on your land. If you manage to barter for land to begin with. Because for me, land is where it's at. If I can find a way to escape the taxes on my dirt, I'd get more dirt.

 

Maybe I'll just declare myself a church.

PT's picture

1.  Squat.
2.  Nomad.
3.  Grow food wherever you can.  Don't worry whether or not you own the land.  Just grow food everywhere.

Not a practical answer for 99.9999% of the population but it is the only way I can see that truly disconnects from fiat slavery.

Killdo's picture

PT

Thanks for a great explanation of what's going on. I'll send your comment to my nieces and nephews to help them understand the context of crony capitalism we live in.

YOu managed to explain Michael Hudson's 'Killing the Host' in 4 paragraphs

techpriest's picture

"Someone tell me who it is exactly that is holding a gun to Millennials heads' and making them borrow?"

I teach English to immigrants. The #1 thing that baffles them is the American debt culture. "The first thing you need to do is deliberately borrow money and pay it off, but not too fast, so you can get a good credit score." I have to agree with the foreigners on this one, saving and paying cash is a much better way to go when it comes to personal finances.

I remember when I used to say "I'm a responsible user of credit," but now I see that the whole country is caught up in an entirely stupid, self-reinforcing debt culture, and that once included myself.

techpriest's picture

Ah, here's a great example from Stack Exchange:

"Making a big purchase over $2500. I have the money to cover it. Should I get a loan or just place it on credit?"

http://money.stackexchange.com/questions/63635/making-a-big-purchase-ove...

Note that it's assumed that big purchase = must use credit.

logicalman's picture

It's not a gun that's being used,  it's ignorance.

Thing is, that ignorance is deliberate.

The understanding of money is deliberately left out of the so-called 'education system'.

You can't fight something you don't know exists.

 

Tall Tom's picture

 

 

 

 

And we can have a return of Debtor's prison too.

 

Concentration...er...I mean FEMA Camps will serve wonderfully for that.

 

Build that wall, Trump.

 

Vote for Trump.

 

Let's strengthen the cancellation of Passports to those who owe not just Government debt but also substantial Credit Card debt too!!!

 

Abolish the Bankruptcy Laws...except for those declared TBTF.

 

We need a wall.

techpriest's picture

I used to think the FEMA camps were fake, but then I was driving long in rural Iowa one day, and while pulling into a random town to get gas, I look on the other side of the road and what do you know, right across the street is a mobile camp with a nice little sign right up front explaining what the field full of trailers is.

And wouldn't you know it, but the Google Maps images over that town don't show anything, just older pics of the field that used to be there. Is there a site that's mapping all of these camps/"Mobile Emergency Assistance Centers?"

Taint Boil's picture

 

 

World’s worst credit card - First Premier Bank Gold Card:

  1. $95.00 Program Setup Fee
  2. $48.00 Annual Fee
  3. $29.00 Servicing Fee
  4. $84.00 Annual Servicing Fee ($7.00 monthly charge)

 

logicalman's picture

World's best credit card?

Lying on the carpet in two pieces, due to the application of scissors.

 

new game's picture

better yet-none, nada, zip. no fucking chase card dude...

Handful of Dust's picture

However, i still see people racking up big charges with very little intention of paying a cent. They buy stuff they can hide [like gold, silver, etc] and then when they get tired of cheating the system or getting called onto the carpet by the cc collection department, the debtors give the cc companies the Big Finger since most of the debt is unsecured and cannot be collected from the cheater.

 

This is one reason cc have limits on cash withdrawals now; people were maxing out there cash withdrawals on lets say 9 cards for total in the hundreds of thousands and then defaulting and declaring bankruptcy.

 

Fraud at every level from every angle is increasing since many Americans feel, "If the Bankers and politicians can do it, why can't I?!"

 

It's part of the Bush and Soweto Legacies -- Lies, fraud and Deceit.

Krungle's picture

And why shouldn't the bottom 99% game the system too? I mean if they can see that the credit card companies are literally conjuring money from nothing, then loaning them worthless money at 20+% interest (that they paid, what, 0.5% on maybe?), then why not leave that stinking pile of wothless debt on their doorstep when you're done with it?

Like you said, the lies, fraud and deceit is our culture now. If you're playing by the rules now, you're just a sucker. 

Lanka's picture

The "New American Dream."

logicalman's picture

No car

No TV

No tracking device, I mean cell phone.

No credit card.

No debt.

If I can find a way to avoid being part of the madness I'll do it and accept the inconvenience.

I cycle EVERY day - best healthcare program on the planet.

FTW

Philthy_Stacker's picture

logical - "No tracking device"

 I got news for you I know people who can track you RIGHT NOW!

My 12 yr. old nephew.
ADChoices on the left and right of your comment.
NSA
Homeland Security
Russia, China, et. al.
 Geo SAt, real-time (with 2 feet of resolution)

And of course ... VISA,MC, the banks, etc.

You need to stay off the internet to truly be private.

Jay's picture

World's best credit card from a user's perspective is American Express. They are really on top of their game with customer service. From a vendor's perspective American Express is possibly the worst credit card because of the high fees.

Kirk2NCC1701's picture

Customer 'service'?  You mean, having to pay off the full amount at the end of the month?

They make money off the merchants, not the Elite card owners.

Crisismode's picture

 

 

CD, they are much more than just talking about it. The active planning for implementation is underway.

I'm in contact with someone very, very high up in the Visa/Mastercard operation, and believe me, it is going to happen a lot faster than you think.