Posted on 04/12/2024 10:43:57 AM PDT by SeekAndFind
When the economy is going well, people buy a lot on credit and keep current with their credit card debt.
When the economy stinks, people still buy a lot on credit but fall behind in their payments. By that measurement, we're in a lot of trouble.
The Federal Reserve Bank of Philadelphia published a study showing that the rate of credit card delinquencies — 30, 60, and 90 days past due — rose to a level not seen since 2012. And it gets worse.
"Fourth quarter 2023 featured the worst card performance in the series," the report said. "All stages of account-based delinquency reached series highs. Only the 90+ balance-based rate was under its series high, set over a decade ago."
Nearly 3.5% of cardholders were at least 30 days past due in December, an increase of 30 basis points from the delinquency rate of the previous quarter. The number of accounts that were 60 and 90 days past due also rose.
Another indication of trouble is that the share of card members making the minimum payment rose 34 basis points from the third quarter.
Banks are reining in their credit card programs while giving out fewer credit line increases and reducing credit lines more frequently. If this trend continues, the record number of delinquencies will turn into a record number of defaults.
The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right now.
(Excerpt) Read more at pjmedia.com ...
Yes, same here. It’s been longer than 30 years here. Just posting the info so folks can see what they’re doing.
“This is how you win over stupid voters, that is, most Americans.”
*************
Many Americans are easily misled and manipulated. It seems that most of the people can be fooled most of the time.
They also prefer to let the government tell them how to live instead of assuming personal responsibility for themselves.
We are living in interesting times.
“Many Americans are easily misled and manipulated. It seems that most of the people can be fooled most of the time.
They also prefer to let the government tell them how to live instead of assuming personal responsibility for themselves.”
That is to say, stupid.
Because we have a feckless, effeminate, corrupt and impotent congress and a SCOTUS that is just ignored. There is no law in the U.S. anymore. Just force and a willingness to use it.
Exactly, he does not have the authority to do this. No one stops him.
You’re right.
Good advice.
I tend to think most freepers are on the experienced side of life, but it’s still a good word of caution.
Who you have to feel bad for are the young kids coming out of public education who got indoctrinated about a thousand social issues but never learned about economics, debt, interest, markets, etc. They’re probably counting on someone like Biden to promise to forgive their credit card debts too.
FREE MONEY FOR EVERYONE!
We’ll just print more.
...and pegs everyone's FICO score at 850.
In response, CC card companies should just cancel the cards of delinquent users.
“caps late fees” means the rest of us will help bail out the borrowing addicts.
bkmk
When banks can no longer recover delinquent credit card debt, they'll stop issuing cards, starting with the worst credit risk customers. Big Gov steps in by issuing their own, like SNAP cards for everything, not just food. Now they know everything you buy, and can cut you off at a moment's notice.
That's a lot of power.
The account is till racking up interest even faster now because of the late (or no) payment of the revolving balance.
I don't like the use of regulatory agencies to issue diktats like this, but it is really like putting a band-aid on a gushing wound.
-PJ
Personal responsibility is not even seen as a worthy goal in some segments of our population. Very sad.
What next? “Forgiveness” as with student loans?
That's been the plan all along.
Bankruptcy is the only way to forgive private debt, but then that person will likely not be able to get future credit for a very long time.
-PJ
btt
Or forgive student loans.
And they claim Trump wants to be Dictator.
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