Cindy McCain's $225,000 credit card debt
The science of economics is founded on the notion that economic agents look out for their own financial interests in a rational way. We know of course this is wrong. The latest piece of evidence: Cindy McCain's balance of at least $225,000 on two American Express cards. The median interest rate on AmEx cards is about 14 percent, says Consumer Reports. Given that Ms. McCain is heiress of a beer distributorship, she may get something a little better. But not much. So she's paying more than $20,000 per year in non-deductible interest on balances that presumably she could easily pay off or refinance at a much better rate. But she doesn't. From the NYT, which also covers Barack and Michelle Obama's disclosures:
Another charge card, held by what was described as a “dependent child,” had also accumulated debts of $15,000 to $50,000. In addition, a credit card held jointly by the couple was carrying $10,000 to $15,000 in debt, the filing indicated, at a stiff 25.99 percent interest rate.Mrs. McCain’s filing, however, indicated that she had substantial holdings in property and stocks — including shares in Anheuser-Busch, which this week became the target of a takeover bid that is expected to send its value climbing. Her land holdings included parcels in Arizona and California, one of which was sold last year for a profit of more than $1 million.
In other filings, the McCains have reported total household assets of $24.6 million to $39.5 million. In recently releasing a summary version of her 2006 tax return, Mrs. McCain reported income that year of more than $6 million, some $300,000 of which was derived from her salary as the chairwoman of Hensley, which was founded by her father.
Comments
A series of debt can lead to a very difficult cycle of unmanageable finances. We should find ways on reducing debt the cheapest way possible and enjoy financial freedom. Thanks for the article!
Posted by: Sofia Kim | June 16, 2008 2:13 PM
Obviously the McCain's can't manage their personal finances. You would think they would have put them in order before McCain ran for President. We can't expect McCain to make hard decisions about the Nation's budget and manage it properly if he can't manage his own.
Posted by: Rich Lamar | June 17, 2008 4:25 PM
I bet that's what her credit card bill is per month, meaning when the disclosure report was filed, that was her balance at that particular time (the black and platinum AMEX cards are charge cards that are non interest bearing). If you multiply this times 12 months, that means she puts about $2.7MM on her AMEX per year, which is within the means of someone who makes $6MM a year
Posted by: david | July 17, 2008 1:06 PM
The credit card debt of Mrs. McCain shouldn't be a news item. She can afford to pay these charges twenty times over. So what's the big deal! Why not print something positive, like all the money she donates to the benefit of mankind throughout the world. Of course, liberals have no interest in promoting her good works.
Posted by: Bob Potter | August 4, 2008 6:10 PM
The credit card debt of Mrs. McCain shouldn't be a news item. She can afford to pay these charges twenty times over. So what's the big deal! Why not print something positive, like all the money she donates to the benefit of mankind throughout the world. Of course, liberals have no interest in promoting her good works.
Posted by: Bob Potter | August 4, 2008 6:12 PM
Big debt like Mrs Mc Cain is a good example for those people who doesn't know how to manage their spending. Though she can afford to pay this charges, she should try to minimize her spending. Cause you wouldn't know what will happen next.
Posted by: credit card | September 3, 2009 11:08 PM