The sharp increase in credit card losses, coupled with the rise in evictions and loan delinquencies, paints a bleak picture for the economy, reminiscent of the challenging times during the Great Financial Crisis.
Food Prices up Over 20%, Credit Card Delinquencies Now Higher As Credit Card Debt Grows on Inflation
Despite Paul Krugman’s assurance that inflation’s grip is loosening, recent reports suggest otherwise, indicating that the flames of inflation are stubbornly persistent. Desperate to keep pace with escalating prices, consumers are increasingly leaning on credit cards, leading to a staggering 38% growth in credit usage since April 2021. Alarmingly, this surge occurs in the backdrop of steep interest rate hikes. An even more ominous sign is the rising credit card delinquency rates.
-Evictions are at GFC levels
-Auto loan delinquencies are skyrocketing
-Credit card delinquencies are skyrocketing
-"Find renters" Google searches are reaching all-time high
-Rental vacancy rates are hitting 6+ year highs across the country
-Mortgage payments adjusted for…— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) October 16, 2023
JUST IN: Credit card delinquency rates continue to rise sharply, now at March 2020 levels.
The delinquency rate on credit card debt for those aged 18 to 29 is now at 9%.
For those aged 30 to 39, delinquency rates are up to 7.5%.
Delinquency rates have more than doubled from… pic.twitter.com/Xszaf6vXzi
— The Kobeissi Letter (@KobeissiLetter) October 16, 2023
Employees are more unhappy now than they were during the height of the COVID-19 pandemic, per Axios: pic.twitter.com/7xI7RmOwGq
— unusual_whales (@unusual_whales) October 16, 2023
A third of Americans earning $150,000 a year or more say they're living paycheck to paycheck and many rely on credit cards to close the gap, per Moneywise.
Read more: t.co/ldQhfORXrj
— unusual_whales (@unusual_whales) October 16, 2023