Let’s hope the average American can connect the dots before it’s too late.
Posted on 02/06/2024 9:45:08 AM PST by ChicagoConservative27
Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of December, according to a New York Federal Reserve report published Tuesday.
In the three-month period from October to December, total credit card debt surged to $1.13 trillion, an increase of $50 billion, or 4.6% from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003 and the ninth consecutive annual increase.
There was also an uptick in borrowers who are struggling with credit card, student and auto loan payments. As of December, about 3.1% of outstanding debt was in some stage of delinquency, up from the 3% recorded the previous quarter but still down from the average 4.7% rate seen before the COVID-19 pandemic began.
(Excerpt) Read more at foxbusiness.com ...
That’s because the January jobs report is bogus.
The solution is obvious, more credit cards.
Let’s hope the average American can connect the dots before it’s too late.
We’re number one.
A thought:
I have rental property, All my Hispanic tenants, pay in cash. They may be on to something.
Credit cards = Slavery
Maybe college students and graduates are expecting the debt to be forgiven. Isn’t that what Presidents do?
Credit card defaults are the natural progression of student loan forgiveness promises. Like putting bullets in the machine gun and handing it to a monkey.
25% interest rate or higher on most credit card debt.
What could go wrong?
I can buy a house with it if I choose. I just have to pay the bill in full in 30 days.
The only place that wouldn't accept it for goods and services was the University of Minnesota to pay my kiddos tuition. (Which in itself tells a story).
It's nice to know you have freedom to charge big expenses and still have no debt bait.
Bidenomics working as promised
I also use my AMX Blue Cash card almost exclusively.
It pays you back 6% on all grocery stores and drug stores.
It pays you back 3% on all gasoline/diesel purchases.
So, I charge all my groceries and fuel.
Occasionally, there are certain mom & pop restaurants that do not take it. Then I use a Mastercard that also gives me cash back.
The only other credit cards I use are Lowes(5%) off all purchases and Hone Depot. HD sends me coupons for $15 off if I charge $100. That is the only time I use it.
You get this credited back to your account monthly. I just call up and they apply the credit to next months balance.
I pay off credit cards every month. Never carry a balance.
Twice in the last ten years my AMX number has been stolen.
Each time I was informed in an email by AMX. The sent me a new card the next day. I am pretty sure it was a Thai restaurant the first time. The illegal charge was in Bangkok.
I paid off 1 of two credit cards and 1/2 of the other today.
The interest rate would make a loan shark envious.
‘Record high’ is a meaningless stat by itself. The population is at a record high too, so everything else of this type will naturally follow. There are more billionaires than ever in the USA, as well as more millionaires than ever. There are more cars than ever. There is more money sloshing around than ever.
I don’t know if Biden will forgive credit card debt. But I sure expect waves of bankruptcies to be coming. For many foolish (or desperate) spenders it will be the only way out.
-PJ
I haven't purchased a car in years from an OEM. Back in the day when I made a purchase I was required to secure the purchase with a down payment. If my memory serves me correctly, auto dealers limited CC down payments to 10% or less.
I have the Blue card but never used it. I'll have to flesh that out. Thanks. The only charges on that Blue card have been the yearly card fee.
The rate of increase of credit card debt is unprecedented in the recent era. Far far more than the rate of increase in the population. This is a trend that has been developing for over a year, and it reveals the weakness of the metric of “consumer spending” as a sign of economic health. But you are right, the number of millionaires and billionaires are irrelevant to evaluating the state of the economy.
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