Consumers are fucking cooooooooked, it's over
14% of people can't even make the minimum payment on their credit cards pic.twitter.com/dstkazxwAa
— Darth Powell (@VladTheInflator) May 10, 2025
Credit card delinquencies are rising across all income levels, putting millions of Americans in financial distress. The latest data reveals that borrowers in both wealthy and low-income areas are struggling. The most alarming figure is that 14 percent of credit card holders can no longer make even the minimum payment, a sign that financial pressure is reaching a breaking point.
The trend is clear. In the wealthiest 10 percent of ZIP codes, the delinquency rate jumped from 4.8 percent in Q2 2022 to 8.3 percent in Q1 2025, an increase of 73 percent. Even high-income households are feeling the strain. The lowest-income 10 percent of ZIP codes saw delinquencies rise from 14.9 percent in Q3 2022 to 22.8 percent in Q1 2025, a 53 percent spike. Financial struggles are no longer limited to any one economic class.
Banks are pulling back. 9.4 percent of U.S. banks tightened credit card lending standards in Q1 2025, up from 6.2 percent the previous quarter. Lenders are restricting access to credit just as consumers need it most. This creates a cycle that worsens the crisis. More delinquencies mean stricter lending, which leads to even more households falling behind.
Total credit card debt continues to climb. Borrowers now carry an average balance of $7,321, up 5.8 percent in just one year. Inflation and rising interest rates have driven up costs, making it harder for people to manage their debt. Many households are running out of options.
This goes beyond individual financial struggles. With consumers drowning in debt and banks tightening lending, businesses will feel the impact next. Retail sales and housing markets could take a hit, while employers may see increased financial stress among workers. These effects will ripple through the entire economy.
Policymakers need to act before the situation spirals further out of control. If nothing changes, millions more will fall behind on not just credit cards, but mortgages, car loans, and even basic living expenses. The financial strain is reaching its limit.
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