THE CREDIT CRUNCH | Consumer Spending Plummets – Ask Sebby

by YouTube Team

Chase reports that consumer spending is down 40% during the credit crunch. What it means for you.
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47 comments

EMS Life May 26, 2020 - 10:42 pm

I can see why consumer spending is down because everyone don’t know if they will continue to have a job during this pandemic and some has lost their jobs during it to.

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Mr. Berry May 26, 2020 - 10:43 pm

Good research! Dave Ramsay's claim that rich don't use credit cards is proven false…again. 60% is the majority.

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gwvaio May 26, 2020 - 10:49 pm

lol I’m so poor

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Mark Plymale May 26, 2020 - 10:50 pm

I really don’t understand why people with stable/moderately high income don’t use credit cards. Just leaving free money on the table.

I’ve noticed my spending has stayed basically the exact same during all this. However, I’ve been approved for the Gold and Schwab Platinum in the meantime so I’ve gotten a ton extra back from my spending via SUBs/referrals/points from spend.

Great video!

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KingNothing993 May 26, 2020 - 10:57 pm

Actually curious, what is your favorite bottle of liquor. I've seen Kavalan in your background before, wonder what your favorite liquor bottle would be, since you mentioned "buying a bottle instead of going out" 🙂

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Yasin M. May 26, 2020 - 11:05 pm

I feel like i've been saving alot more just because I literally havent been to restaurant since march 9. I'm more conscious about using retail cards like my nordstroms too.

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rcelio1 May 26, 2020 - 11:07 pm

Thanks as always for the quality info.

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Traplover May 26, 2020 - 11:28 pm

This is gonna be like the Great Recession where credit card bonuses will be big again

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jvolstad May 26, 2020 - 11:31 pm

I would be considered upper middle class and have always used my credit cards. I don't however, carry a balance. I can't remember the last time I paid interest on my account. I'm debt-free and have a 800+ FICO. I am also a fan of Dave Ramsey, but unlike Dave I believe in self-control when it comes to spending. My only real vice is Starbucks. ☕

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hsbthree May 26, 2020 - 11:55 pm

I have Chase Sapphire Preferred and Freedom cards haven’t use since the start of the pandemic.

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teamrocfan May 27, 2020 - 12:09 am

Thank you Sebby, amazing job. Also great job not posting 3 “stimulus check” videos every day like Meet Kevin

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SolidLiquidFox May 27, 2020 - 12:24 am

I understand supermarkets spend has gone up, but there is a point where you can easily overspend/hoard in that category. Its interesting how different incomes adjust their spend categories going forward.

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あーさー May 27, 2020 - 12:29 am

the thumbnail though lmao

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MysteryBop May 27, 2020 - 12:35 am

Sebby, where can I find your desktop wallpaper?

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Phil Bartlett May 27, 2020 - 12:44 am

Sebby, thought you would want to know that stimulus money is being issued on a debit cards rather than a bank deposit or a check. This happen to me today. We hate debit cards! I know this has been done to stimulate spending, not an issue for us. The premise is that many are banking and saving their stimulus money. Like most debit cards, there are some restrictions which make the card unfriendly i.e. limited withdrawals in cash per day. AND, using a non network ATM incurs a charge. We are rural so the nearest network ATM is 50 miles round trip. Since we are receiving from 2 to 6% cash back on our credit cards we don’t want to use this debit card we were given. Another example of “I’m from the government and I’m here to help you” (as long as you do it my way)!!

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Janette Ramos May 27, 2020 - 12:48 am

Hi Sebby! I think the report is pretty accurate. I also blame the luxury industry as well. A lot of companies put items on sale and did quite a few morale boosting promotions while Louis Vuitton as well as Channel raised their prices in the middle of a global pandemic. Many people took this personally and bought less. I found myself spending more on crafting items and cheap things to do at home. Love your videos. Stay Healthy to you and Mandy💕💕

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thejokerspeaks May 27, 2020 - 1:10 am

Looks like Dave Ramsey is wrong about the rich owning credit cards. A baby boomer got me introduced to credit card rewards in 2001, who went on to become rich herself. She happy enough to get a free toaster or stereo, with the poor redemption that were dominant in the day. I thought I was killing it with 1% on the Citi Dividend.

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Doc May 27, 2020 - 1:13 am

Hey Seb, Excellent video and analysis! I teach research at the graduate level, so i love anything with stats. I concur with your interpretation of the results. It makes sense in relation to spending variation as it correlates to income distribution.

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Pluto 3D May 27, 2020 - 1:27 am

I have to wait til July because of 5/24 to apply for the freedom card. Gonna apply for freedom unlimited too and the US Cash plus.

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Fearlessly Underrated May 27, 2020 - 1:47 am

Should be easy to by pass 5/24 when I apply for the final piece of my Trifecta now :0)

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Michael May 27, 2020 - 1:57 am

nothing open how can you spend anything or waiting in a 2hour line fuck that i'm still making money but i can barely spend anything unless i want to wait weeks on amazon even with 2 day prime

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NineSeven 420 Empire May 27, 2020 - 2:09 am

I just got my Chase Freedom card today. To add to my 5% card rotation and increased my credit by $4500. I think I am going to get the AARP card next…

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Jorgio Castro May 27, 2020 - 2:56 am

Thanks man. Feel better!

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Justin B May 27, 2020 - 3:04 am

All spending is down. Nobody is trying to get in debt

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ThatCho May 27, 2020 - 3:09 am

Anyone have thoughts on Personal Capital?

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Jackson Welch May 27, 2020 - 3:58 am

Ew who uses sublime, vi is where it’s at 🙂

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Ray May 27, 2020 - 5:04 am

Who’s thinking of getting a Hydrow?

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Raul Aldana May 27, 2020 - 5:15 am

I’ve dropped my spending by 60 and in sone cases 100 percent since most places are closed here in San José , CA since we are SIP. It will change when things open up. I’ve been saving the difference and charity.

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sladesurfer May 27, 2020 - 5:15 am

I spent more non essential. Amazon and being stuck at home. Bad combination

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Samuel Sze May 27, 2020 - 8:59 am

Thanks for the suggestion regarding Personal Capital. I have been using Mint for the longest time, and used to love it, but in the last year or so I have found that numerous of my accounts (noteably American Express) have frequent trouble syncing with the app so you often have to manually try to update and sometimes it fails… It user to work flawlessly and effortlessly but less so now.

For me, the critical usecase for Mint is for creating a monthly budget, syncing across a wide range of cards with all spending automatically categorized so that both me and my wife can be spending independently across different accounts and we can immediately tell whether we are within budget or not. Its still works, but when Mint fails to sync its quite frustrating and my usage of the app is slowly declining for this reason… A feature I really like about mint budgeting is the rollover setting you can check for a particular budget. What it does is automatically rollover and surplus or defecit from one month to the next… This can incentivize saving in one month so you can spend it in the next month, so we set up a variety of allowances for different kinds of spending (dining, shopping allowances for each familt member, vacation allowance, etc.) and you can see how much you have in that budget…

I have been looking for an alternative app that does a similar thing… From reading reviews I can't quite tell if Personal Capital has these kinds of features as a budgeting tool, from what I can tell its emphasis seems more focused in investments?

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Justin Williams May 27, 2020 - 1:47 pm

They are killing me without my notifications!!! But I’m here!!!!! Lolol lets gooooo 🤙🤙🤙🤙🤙

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Adventures with Corey May 27, 2020 - 2:05 pm

Do i complete the Chase trifecta… i am missing the freedom unlimited. Current set up. CRP, Freedom-Amex gold, Hilton Aspire. I am kinda waiting to see if they offer better signup bonuses once things start to open back up. What are your thoughts @asksebby?

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jimster360 May 27, 2020 - 3:28 pm

yay! the music's back!!

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Shaolin Soldier May 27, 2020 - 4:18 pm

I've paid all my credit cards off. I only had 3 cards. Lol 😂. They are collecting dust until August. I'm paying cash for everything. Or maybe Sept.. depends on the situation.

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Tracy Gilbert May 27, 2020 - 5:21 pm

The rich have fewer places to spend during the lockdown so it makes sense that they would spend less.

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Mark Murphy May 27, 2020 - 6:39 pm

I am very different from the credit usage graph. I use around 2% cash, never uses debit card, and everything on a credit card for value.

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ramon ruiz May 27, 2020 - 7:26 pm

I recently got approved for two new cards & after two months passed I applied for two newer cards but got declined. I was curious to know how long of a wait should I wait before aiming for any new cards ?
I also have a credit score of a little over 700

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Jesse May 27, 2020 - 7:27 pm

Sebby sebby sebby. Delta is now valuing miles practically qual to the dollar (1:1). Now that airlines have devalued their miles so much, should I cancel my Amex cards going forward? What’s going on? Thanks for your help!

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Brian Young May 27, 2020 - 9:28 pm

Did you abandon your Facebook page

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Derby Fung May 28, 2020 - 2:07 am

Thank you, Sebby

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Jay Dee May 28, 2020 - 2:55 pm

Great information in this vid…moral of the story, stay out of debt

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The Great Satan May 28, 2020 - 4:48 pm

Besides losing some freedoms of being able to go into stores without wearing a mask, life has been pretty good. Wife and I are still working and nothing has changed really

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latieraqueen87 Pacheco May 30, 2020 - 12:18 am

Now that I don't use credit. I'm getting card options galore and increases.

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Vlone Vlone May 30, 2020 - 10:18 am

ive been spending more than i ever have and never get shit!! in fact i got denied csp about a week ago, this is bullshit cant wait to get my 5 chase cards so i can get out of their bullshit system

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Melanin Poppin June 1, 2020 - 6:14 pm

Will it hurt my credit utilization if I cancel my Amex gold card for the Amex Delta Skymiles Gold with a credit limit? I'm concerned becuz the Sky card I received a limit of only $2k. I've been a member since 2005 and they pulled my credit score at 789. Noone could advise why the limit is so low

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donewithandover June 2, 2020 - 9:10 am

I may have missed it but some of the ‘non-essential’ spending could be due to retailers not being open in some states.

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Joe Sullivan July 1, 2020 - 3:36 am

… but the high income users pay their balance every month in full. The credit line is used for cash flow management.

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