Posted on 08/03/2022 10:36:23 AM PDT by EBH
Credit card debt held by American households surged by 13% on an annualized basis in the second quarter, representing the sharpest climb since 1999 as consumers increasing rely on credit amid sky-high inflation.
The Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit released Tuesday shows total household debt reached $16.15 trillion at the end of June, an increase of $312 billion from the same quarter a year ago with mortgage, car loan and credit card balances all rising
Mortgage balances climbed by $207 billion to $11.39 trillion, auto loans rose by $33 billion to $199 billion, and credit card balances increased by $46 billion and are now just below pre-pandemic levels, according to the report. Student loan balances, which have been on pause since early on in the pandemic, remained relatively unchanged.
All told, non-housing balances increased by $103 billion (2.4%) from the first quarter, the greatest quarterly increase since 2016.
(Excerpt) Read more at foxbusiness.com ...
This is the key economic indicator i was waiting for. What happens when millions can’t pay the minimums on their credit cards?
A new credit crisis is looming.
Everything is fine.
Economy is fine.
No recession.
Inflation is being addressed.
The Fed is on top of this and not behind the curve.
- Ghost of Baghdad Bob
Very bad time to be using credit cards to ‘get by’
ok, but this line indicates we're back to normal:
..and credit card balances increased by $46 billion and are now just below pre-pandemic levels
Seems contradictory to me
That would be expected at this period in the economic cycle.
People paid off debt with their stimmies during the lock downs. So much free money was thrown around it was ridiculous.
Now, people are resorting to credit cards to make ends meet at the fastest rate in 20 years to deal with inflation and the recession (along with poor financial education).
That’s the way I read it.
“A new credit crisis is looming.”
That means all the big lenders get bailed out by .gov.
Again.
Maybe not contradictory. By surge they could mean the percentage of increase over time. My understanding was that people took the free Covid money and paid down credit card debt. Now folks have quickly ramped those balances back up. It will be interesting to see the next report to see if the trend continues. I suspect it will.
What ‘economic cycle’?
The one of out-of-control stupid Democrat spending causing massive inflation? Or the stupid democrat choices made after excessive spending that caused the recession?
I remember the Cater years...
This isn’t an ‘economic cycle’ it’s a democrat ‘unicorn economic thinking’ disaster.
What ‘economic cycle’?
The one of out-of-control stupid Democrat spending causing massive inflation? Or the stupid democrat choices made after excessive spending that caused the recession?
I remember the Carter years...
This isn’t an ‘economic cycle’ it’s a democrat ‘unicorn economic thinking’ disaster.
Transitory this, illusory that, debt is just an idea. Spin City is a weird destination.
Statistically that puts us into the category of higher credit card monthly debt for the headline readers.
Nice.
“What ‘economic cycle’?”
The one that has been happening ever since America has existed. I’ve been around for all of them since 1949, and studying them since about 1978.
Politicians have been affecting the cycle for a long, long time, so what? It’s still the same cycle.
I've wondered about this definition of credit card debt. For those of us who pay the balance each month before the due date, does it depend on the date the credit card company reports their stats? My statement balance for July is $500, and I pay it in full within 5 days, and charge another $500 in August, paid in full by Sept. 5. How much debt do they declare I am carrying? I'm not paying a penny in interest, and I'm earning 5% cash back on purchases.
Meanwhile the credit card companies call us deadbeats. Ha!
So a new government bailout may be looming. /s
Working on it.
I was ok until a couple rounds of emergency surgery and the related bills for everything else that nickel and dimes me to death in between paychecks.
The big ones are on autopay to a very low interest card.
Surgery two which I hope won’t be far off should be relatively lower cost.
Besides I am selling surplus stuff that I have no need of that sat for a long time.
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