For the first time in history, total credit card debt is about to cross $1 trillion.
Since Q4 2020, total credit card debt is up over $200 billion.
Americans currently hold a record $986 billion in credit card debt.
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— The Kobeissi Letter (@KobeissiLetter) August 1, 2023
According to a survey conducted in late-2022, more Americans are carrying a balance than not.
An alarming 56% of survey respondents claimed they carried a balance at some point in Q3 2022.
This is all while credit card interest rates hit a record 25%.
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— The Kobeissi Letter (@KobeissiLetter) August 1, 2023
Meanwhile, delinquency rates have been rising to nearly 3%.
Delinquency rates fell sharply during the pandemic as stimulus was handed out.
Now, we see the exact opposite trend with 6-straight quarterly increases in delinquencies.
This ties the longest streak since 2008.
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— The Kobeissi Letter (@KobeissiLetter) August 1, 2023
As prices of basic necessities rise, Americans are borrowing to offset the costs.
Many Americans have not experienced interest rates this high in their adult lives.
The credit card debt crisis is concerning.
Follow us @KobeissiLetter for real time analysis as it develops.
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— The Kobeissi Letter (@KobeissiLetter) August 1, 2023