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U.S. Credit card debt hits a 'staggering' $1.13 trillion. Here's why so many Americans are under pressure
CNBC via MSN ^ | 02/07/24 | Jessica Dickler

Posted on 02/07/2024 2:57:24 PM PST by SeekAndFind

* Collectively, Americans owe $1.13 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.

* Higher prices have largely caused consumers to spend down their savings and lean on credit cards to make ends meet.

* Now, young adults, who are also burdened by high levels of student loan debt, are increasingly falling behind on the payments, the New York Fed found.

Americans now owe a collective $1.13 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. This is an all-time high.

Credit card balances increased by $50 billion, or roughly 5%, in the fourth quarter of 2023, the New York Fed found. Credit card delinquency rates also jumped — particularly among younger millennials, or borrowers between the ages of 30 and 39, who are burdened by high levels of student loan debt.

"This signals increased financial stress, especially among younger and lower-income households," said Wilbert van der Klaauw, economic research advisor at the New York Fed.

(Excerpt) Read more at msn.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: consumer; credit; creditcard; debt; donatefreerepublic
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To: SeekAndFind

I had extreme credit card debit twice in my lifetime, it is self inflicted torture. Not anymore. It takes determination to eliminate and maintain.

For the past 20 years I have been able to not charge more per month than I could not repay in full. In fairness, my children are self sufficient adults so I’m not in a situation where cc dependency is necessary like a lot of young American families.

I lived through the Carter Era, it was terrible but where we’re at now is 2 times worse, IMHO.


41 posted on 02/07/2024 5:42:23 PM PST by bigfootbob (Arm Up and Live Free!)
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To: TonyinLA

LOL. There sure is ample reason to believe they are coming for us.


42 posted on 02/07/2024 5:43:19 PM PST by Retain Mike ( Sat Cong)
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To: jimwatx

Ssshhh!


43 posted on 02/07/2024 5:43:56 PM PST by bigfootbob (Arm Up and Live Free!)
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To: Fai Mao

Ditto


44 posted on 02/07/2024 5:45:34 PM PST by bigfootbob (Arm Up and Live Free!)
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To: SeekAndFind
Where is the pressure to live debt-free?

I do. On everything.

And, there's a whole lotta money that I keep that would be creditors do not.

45 posted on 02/07/2024 5:47:59 PM PST by Seaplaner (Never give in. Never give in. Never, never, never...in nothing, great or small...Winston ChurchIill)
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To: Retain Mike

We have no debt.


46 posted on 02/07/2024 5:49:37 PM PST by yldstrk
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To: Psalm 73
$425 is nothing compared to that poor sucker that has $1.13 trillion on their credit cards....

I was thinking the same thing. Who runs up a trillion dollars on their credit cards?

Anyway, it's getting so bad for citizens in credit card debt that they'll be faking their identity so they can pretend to be illegal aliens, and get free stuff.

47 posted on 02/07/2024 6:02:52 PM PST by roadcat
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To: EEGator

The interest rate charged by credit card companies is small compared to what Merchant Cash Advance (MCA) lenders charge small businesses, which is between 30-70%. MCAs have become as common with businesses as credit cards are with consumers since the pandemic. The MCA lender supposedly buys a percentage of the business’s receivables, but it is really a disguised high interest loan always personally guaranteed by the borrower’s principal. The lender sets up an account where all of the business’s money goes and draws hundreds or sometimes thousands of dollars out of the account weekly or even daily. The business initially relieves a large transfusion of cash from the loan, but is then burdened by the periodic payments. This often causes the business to take out several more such loans to sustain its cash flow, which leads to its eventual collapse.


48 posted on 02/07/2024 6:10:13 PM PST by PUGACHEV
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To: Right_Wing_Madman
In a financial collapse gold and silver will be worthless.

This did actually happen once. In the mid-1300’s the richest man history, the King of Mali, Mansa Musa, went on a pilgrimage to Mecca. He distributed so much gold as gifts along the way, that the value of the commodity in Europe and the Middle East depreciated to the point where economies collapsed, taking more than a decade to recover.

49 posted on 02/07/2024 6:21:14 PM PST by PUGACHEV
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To: PUGACHEV

I hadn’t even heard of that. I’ll have to read up on it.
Thank you for the heads up.


50 posted on 02/07/2024 6:32:32 PM PST by EEGator
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To: fatboy

I want to be 100% sure it’s happening and happening soon like within months. You don’t know how long they can drag this thing out.


51 posted on 02/07/2024 6:42:32 PM PST by jimwatx
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To: Right_Wing_Madman

If you don’t have firepower, someone will just take the gold. With enough firepower, you can get all the gold you desire.


52 posted on 02/07/2024 7:20:34 PM PST by Fai Mao (Starve the Beast and steal its food.)
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To: cornfedcowboy

First they’ll close the ATMs, then they’ll close the doors.
By the time word spreads it will be to late.
In 1929 banks were shut for awhile and then limited withdrawals. Government also bought all the gold.


53 posted on 02/07/2024 7:25:32 PM PST by Keyhopper (Indians had bad immigration laws)
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To: Fai Mao
If you don’t have firepower, someone will just take the gold.

Proving that the gold isn't worthless.

54 posted on 02/07/2024 8:30:07 PM PST by Right_Wing_Madman
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To: Psalm 73

LOL, my card wouldn’t allow me to charge that much. They keep offering a higher credit limit, but I seriously do not want to buy a Lamborghini.


55 posted on 02/07/2024 8:38:17 PM PST by Veto! (FJB Sucks Rocks)
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To: cornfedcowboy
If you see a line at your bank…….get in it.

Your place in the bank line won't matter. The bank won't have any money for you anyway. More important is your place in the queue during bankruptcy proceedings. US bankruptcy will be handled like any other bankruptcy: some creditors will see some of the money owed to them and other creditors will get stiffed.

56 posted on 02/07/2024 8:45:08 PM PST by Right_Wing_Madman
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To: hinckley buzzard

“People paying 22% interest to finance their household expenses are not doing it to create investment capital. Most of them don’t have 500 dollars in their savings account.”

As a general rule that is correct. However...

People who can get returns above the interest on their debt will/should go into debt up to the hilt to maximize wealth appreciation. If their debt is ever called in they can liquidate some assets to pay it off.

I could pay off all my CC, mortgage, etc. debt within 3 days if necessary. I would just have a smaller snowball to roll down the hill (build wealth with).


57 posted on 02/08/2024 2:21:44 AM PST by Justa (If where you came from is so great then why aren't Floridians moving there?)
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To: SecondAmendment

“In other words the bank literally creates most of the money it loans out od thin air as an accounting gimmick, less their reserve requirements.”

You should open a bank!


58 posted on 02/08/2024 7:50:57 AM PST by TexasGator
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To: TexasGator
> You should open a bank!

Yeah, that's what I keep telling the regulators, but they won't give me a charter.

59 posted on 02/08/2024 10:12:35 AM PST by SecondAmendment (The history of the present Federal Government is a history of repeated injuries and usurpations ...)
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