Americans Just Went on a $32 Billion Credit Card Shopping Spree

Americans may be heading for another credit card crunch. After paying down almost $35 billion in credit card debt in the first quarter of the year, consumer charged up a storm in the second quarter, racking up $32.1 billion in new debt, according to CardHub, a credit card comparison site. CardHub says that’s the second highest quarterly total since it began keeping data on credit card debt in 2009.
While that buying binge could potentially signal improved confidence in the economy and in their own financial prospects, CardHub warns that the debt risks are building. It projects that consumers will close out the year with an annual net increase of more than $60 billion in credit card debt, with the total credit card debt outstanding climbing to more than $900 billion, the highest since the recession.
Related: 5 Cities with the Most Credit Card Debt
CardHub CEO Odysseas Papadimitriou says that jump brings Americans “perilously close to a tipping point at which balances become unsustainable and delinquency rates skyrocket.”
For 7 out of the past 10 quarters, consumers have racked up more debt than they’ve paid off. Papadimitriou cites that as evidence that consumers are going back to the bad habits they had before the economic downturn.

CardHub based its study on data from the Federal Reserve, and if the results are a sign of trouble then another new report from the Federal Reserve Bank of New York suggests that problem is even worse than it looks. In a report called “Do We Know What We Owe,” the New York Fed found that people widely underestimate their credit card debt, telling the Fed’s survey-takers that it’s about 37 percent lower than what lenders say it is.
So if we are actually getting to a tipping point with credit card debt, it may be even closer than we realize.
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Medical ID Theft is a Way Bigger Problem Than You Think

Forget Target and Home Depot. You may be risking identity theft every time you visit the doctor’s office.
Medical ID theft, in which thieves steal your Social Security number and health insurance info in order to fraudulently obtain medical services or treatment, is skyrocketing.
More than 90 percent of healthcare organizations have had a data breach, and 40 percent had more than five data breaches in the past two years, according to a report released last month by ID Experts. Attacks by criminal organizations are up 125 percent over the past five years. Medical identities are worth far more on the black market than financial identities.
The study estimates that data breaches may have cost the industry $6 billion in the last two years. The scariest stat for consumers: Half of organizations surveyed have little or no confidence in their ability to detect all patient data loss or theft.
Related: Now You Could Lost Your Medical Identity, Too
Victims of medical ID theft spend thousands to restore their credit and correct inaccuracies in their medical records, and unlike banks and credit card issuers, most healthcare organizations offer no protection services for victims.
In addition to the financial toll, there are health risks to victims of medical ID theft. If someone steals your identity and receives treatment that gets added to your medical records, doctors may have incorrect information regarding your health history and allergies.
It’s difficult to prevent medical ID theft, but monitoring your credit and closely reading your healthcare bill and explanation of benefits notices can help you catch it early.
Can a Few Chocolate Euros Stop a Grexit?

German Finance Minister Wolfgang Schaeuble has clashed repeatedly with Yanis Varoufakis over Greece's debt and economic reforms since the leftist Syriza party took power in January, pledging to end austerity and renegotiate the bailout terms.
In an interview with the children's television program "Logo" on German broadcaster ZDF last week, a girl reporter gave Schaeuble a supportive handful of the chocolate coins.
"I'll take a few for my Greek colleague, he also needs strong nerves," Schaeuble replied.
Greece hopes to secure a cash-for-reforms deal with its lenders this week. But after four months of tortuous negotiations no breakthrough is in sight. Without a deal Athens risks default or bankruptcy in weeks.
A Made-Up Holiday That Could Help Your Kids Go to College

Marketers are great at making up holidays—and who doesn’t love having an excuse to eat donuts on National Donut Day or pizza on National Pizza Day?
Most of these special days, however, tend to take a toll on both our wallets and our waistlines. Today may be an exception: The personal finance and college saving industries have dubbed today 529 Day (Get it? 5/29), a day to celebrate saving for college via tax-favored 529 plans.
Americans could benefit from any impetus to save more for higher education. The average American family that’s saving for college put away about $2,600 last year and has a total of just over $10,000 socked away for education, according to Sallie Mae’s annual How America Saves for College report. That’s the lowest amount since the survey began in 2009 — or about enough to send one kid to college for one semester at today’s prices.
Related: Top-rated 529 Plans Probably Are Not For You
Many states are “celebrating” the day with everything from waived enrollment fees to discounted admission to local baseball games. (Each plan is sponsored by a state but run by financial firms.) Check out this interactive map to find out if your state is offering any incentives today.
Contributions to a 529 plan are made after federal taxes, but the money grows tax-free as long as the proceeds are used for education costs. Some states also offer tax breaks on contributions.
The average cost of attending public college this year is $19,000. For private college it’s $33,000, according to The College Board. So there’s no time like today to start saving.
The 5 Funniest 2015 Commencement Speakers

At commencement ceremonies, every speaker gets to be a comedian, even comedians. The competition was tough, but at least two of the best lines compiled by The Washington Post, came from politicians.
“I stand here humbled, gracious and completely naked under this robe.”
--Maya Rudolph, Tulane University
“The UVA community has some experience with being defined by outsiders. It has been said that a rolling stone gathers no moss. I would add that sometimes a rolling stone also gathers no verifiable facts or even the tiniest morsels of journalistic integrity.”
--Ed Helms, University of Virginia
“Tisch graduates, you made it. And you’re f----ed. The graduates from the College of Nursing, they all have jobs. The graduates from the College of Dentistry, fully employed. The Leonard N. Stern School of Business graduates, they’re covered. The School of Medicine graduates, each one will get a job. The proud graduates of the NYU School of Law, they’re covered. And if they’re not, who cares? They’re lawyers.”
--Robert DeNiro, Tisch School of the Arts, New York University
…[Yale was] one touchdown away from beating Harvard this year for the first time since 2006. So close to something you’ve wanted for eight years. I can only imagine how you feel. I can only imagine.”
--Vice President Joe Biden, Yale University
Those of you who are graduating this afternoon with high honors, awards and distinction, I say, ‘Well done.’ And as I like to tell the C students, ‘You, too, can be president.’”
--former President George W. Bush, Southern Methodist University
Denny Hastert: Uh, About That $500,000 Statue…

Illinois state lawmakers are hitting the breaks on a proposal to spend half a million dollars for a statue honoring former U.S. House Speaker Dennis Hastert after the Justice Department indicted the Illinois Republican on multiple charges Thursday.
About a month before the DOJ announced the indictment against Hastert,
Illinois House Speaker Michael Madigan introduced a bill to allocate $500,000 from the Illinois Development Fund for a statue of Hastert, who represented Illinois’ 14th Congressional for 20 years after serving as a state representative.
Related: Lying, Cheating, Stealing: How Corrupt is America?
However, Madigan’s spokesperson, Steve Brown, said Hastert contacted lawmakers asked that they defer the proposal because of the state’s financial condition. Illinois currently is running a $9 billion deficit. Still, the bill, which passed through a house committee, was placed on the calendar for a third reading on May 18.
In the indictment released Thursday evening, federal investigators allege that Hastert paid $3.5 million in hush money to “cover up misconduct.” The money allegedly went to someone in Yorkville, Ill., where he previously coached high school wrestling. The seven-page indictment also accused him of lying to the FBI.
Following the announcement, Hastert reportedly resigned from his current position at Washington, D.C., law firm Dickstein Shapiro, as well as a board member at CME Group, according to Reuters.