Thank you for your support. My base has really dwindled since I lost $700 million of my clients' funds,
Posted on 03/17/2025 7:18:41 AM PDT by delta7
American households have been unable to pay off their debts. The Federal Reserve Bank of New York recently reported that household debt has reached a new all-time high at $18.04 TRILLION.
Americans acquired an additional $93 billion in outstanding payments during Q4 of 2024, with half of this debt finding its way onto high interest credit cards. Credit card debt has also reached a record high at $1.21 trillion. I reported in January that credit card defaults his a 14-year high after skyrocketing by 50% in a one-year period.
Donald Trump said during his campaign that he would like to cap credit card interest fees at 10%, perhaps for a temporary period. There are now bipartisan calls for companies to lower fees, with Congresswomen like AOC and Anna Paulina Luna both championing a 10% credit card cap.
Prior to the pandemic, Americans paid $120 billion annually in credit card interest fees from 2018 to 2020, amounting to $1,000 annually per household. In 2022, consumers were paying $105 billion in interest as it has become the main cost behind having a credit card. Rates on credit cards have doubled in a mere decade from 12.9% in 2013 to 22.8% in 2023.
US Household Debt
The Federal Reserve Bank of New York’s February 2025 Survey of Consumer Expectations also found that Americans are highly concerned about missing payments, falling into delinquency, or losing their livelihoods. Consumers foresee inflation spreading across the board. In February 2026, the general public believes gas will rise by 3.7%, food by 5.1%, rentals by 6.7%, and medical costs by 7.2%.
Then, around 14.6% of Americans said they believed they would miss a minimum debt payment over the next three months. Americans have not expressed this much concern about missing payments since the early pandemic days of April 2020, when the mainstream media insisted the world was coming to an end.
Aggregate delinquency rates rose 0.1% over a one-quarter period. Mortgage balances increased by $11 billion, hitting $12.6 trillion by December 2024. When choosing between home or auto payments, consumers are prioritizing shelter. Auto loan balances also experienced an $11 billion increase, rising to $1.66 trillion in Q4 2024, but serious delinquencies on auto payments have risen substantially.
Student loan balances increased by $9 billion, and now sit at $1.62 trillion. Students who once thought their loan debt would be forgiven have been notified that their future social security payments will be garnished by the government if they fail to pay.
Most households are a few missed payments away from financial ruin. In fact, 47%, nearly half, of American households currently live paycheck to paycheck. Americans are in an extremely delicate financial situation right now, and this looming debt crisis will not disappear.
Excellent idea. First, can you loan me $1000?
Instead of “Keeping up with the Jones’s,” American’s need to learn to live within their means.
When I was a young man right out of the Marine Corps, a credit card was near impossible to get. I applied for a few and was turned down by all.
Fast forward 30 years and my daughter just graduates from HS in 2005, and credit cards are practically being throw at her.
And they wonder why we have $18 Trillion dollars in household debt?........................
Do your part. We are. 🤔😵😊👍
“The Federal Reserve Bank of New York recently reported that household debt has reached a new all-time high at $18.04 TRILLION.”
I have $250k debt. I also have $700k equity over that debt.
I have done my part. Except for the bill for the hernia surgery I just had, I am debt free. No mortgage, no Credit Card debt.
👍😊
IATG
“When I was a young man right out of the Marine Corps, a credit card was near impossible to get. I applied for a few and was turned down by all.”
Shortly after I went into the Navy, my father signed a personal loan at the local bank so I could buy a car.
Something in the system triggered and they sent me a MasterCard.
It came in very handy, particularly with renting cars and hotel rooms.
Thank you for your support. My base has really dwindled since I lost $700 million of my clients' funds,
Hell, I couldn’t even rent a car when I was in!
Was told I had to be a E-7 or better!........
You make a good point. Not all personal debt is bad.
till debt do us part
Some debt can be productive, if its properly used (i.e., acquiring assets that appreciate rather than consumer goods that quickly lose their value).
If only we had Brandon as pResident again- he could forgive all the debts, right? Doesn’t just have to be student loans?! /s
“Was told I had to be a E-7 or better!........”
I was an E-5 in 1970 stationed in Hawaii.
I rented a car in Berlin airport a few years back and the agent gave me a paper listing places I could not take the car.
All were former Eastern Bloc countries except Italy.
I asked her why Italy, and she said “They will steal it and strip it!”.................
bkmk
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