Posted on 01/25/2024 3:48:53 AM PST by davikkm
In the ever-evolving landscape of financial dynamics, a disconcerting narrative unfolds. Credit card delinquency rates have surpassed pre-pandemic levels, marking a troubling turn in the economic trajectory. The report from the Federal Reserve Bank of Philadelphia paints a stark picture of the challenges faced by consumers, revealing alarming statistics that demand our attention.
Delving into the heart of the matter, the report reveals that credit card delinquency rates have surpassed pre-pandemic levels. A staggering 3.2% of card balances were at least 30 days past due as of September, marking the highest figure in over a decade. This surge, up by over 40 basis points from the previous quarter, paints a grim picture of the economic challenges faced by cardholders.
(Excerpt) Read more at citizenwatchreport.com ...
We are blessed that we haven’t carried a credit card balance for the last 15 years. They are simply a convenience.
Bidenomics.
Auto loans:
Delinquency rates at highest level in almost 30 years
https://www.bankrate.com/loans/auto-loans/subprime-auto-loan-delinquencies-surge/
Homes:
Home Sales Were the Lowest in Almost 30 Years in 2023
https://www.wsj.com/economy/housing/home-sales-likely-fell-to-15-year-low-in-2023-3da220e1
So....Consumers have racked up record credit card debt. They are now defaulting on credit cards at a high rate. They are defaulting on car loans at the highest rate in 30 years. Home sales are the lowest they’ve been in 30 years.
Gosh, why do people think the economy sucks? Clearly they just don’t know how good they have it! Joe should continue to tout Bidenomics and tell them all about this wonderful economy.
I am going to predict that some Democrat is going to suggest that forgiving student loan debt will help alleviate the growing credit card debt.
The penniless college grads could then put the money towards their credit card debt.
And we all know they would do it being the wise Democrat educated people that they are.
And yet the dolts on MSNBC - the Joe's and Mika's and Georg Conway's can't figure out why people are sick of Bidenomics - and are turning to Trump? Liberal liar fools - they can't help Biden out of this one.
.
But this is the best economy since Calvin Coolidge….right wing conspiratorial article
(Super sarc)
I guess I am unaware, but 3.2% is “staggering”?
the average interest rate on credit cards has gone up a bunch. Higher defaults should be expected
Same.
Just call the number on the screen and we will reduce your debt.
If someone misses one payment, the rates jump to usury level.
It should be a crime.
All by design.
Credit card companies are nothing but legalized loan sharks.
They figure they’ll get bailed out, just as with the student loans.
3.2% is not the interest rate
I agree that credit cards
should be treated as
a convince.
Some are trapped due to
catastrophic circumstance.
The key, for me, is to
try and pay twice the
minimum called for.
Through diligence and
shear determination,
I’ll see that balance
to zero.
I was wondering why 3.2% of card balances being past due is "staggering"....
Loan loss allowances are typically 1.5 - 2% for credit card advances. The bank holding the cards will expense a bad debt allowance on every dollar put on the card. 3.2% is a high level of revolving debt delinquency. And it is another inflationary cost driver — the bank has to charge more somewhere to cover the increased bad debt expense.
At least they don’t have to put up with any mean tweets coming from the White House by an orange bad man.
Let’s go Brandon
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