Tighter financial conditions may increase defaults and delinquencies among young adults.

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by BoatSurfer600

This recession will turn into a depression real quick.

Americans under 25 racked up more credit card debt than any other age group last year – and they’re about to run into trouble as financial conditions tighten and inflation stays high

“Defaults and delinquencies could spike among young adults who’ve racked up credit card debt, thanks to tighter financial conditions that are starting to impact how US consumer spend, Moody’s Analytics said.

In a note on Tuesday, Moody’s pointed to higher interest rates, which have raised the cost of borrowing and slowed down consumer credit usage. Outstanding balances across all consumer credit products grew just 0.2% in May, compared to 5.3% in May of last year. Meanwhile, accounts grew at a rate of just 0.1%, compared to 2.8% a year ago.

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But higher rates potentially spell trouble for young adults, some of whom have already racked up credit card debt to offset the effects of inflation on their savings.”

via cnbc:

“Costco is taking a page from Netflix’s book.

The retailer is cracking down on people sneaking into its clubs and trying to shop with other people’s membership cards, it said Tuesday.

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Costco said it has always asked shoppers for their membership cards at the cash registers when they check out. Now, it is also requesting to see cards with a photo at self-checkout registers — and to view a photo ID if a shopper’s membership card has no picture.

A U.S. recession is coming this year, HSBC warns — with Europe to follow in 2024


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