US credit card delinquency rates hit historic highs alongside record debt and negative net savings.

Sharing is Caring!

As the nation grapples with economic turbulence, a chilling revelation shakes the very foundation of financial stability: US credit card delinquency rates soar to unprecedented heights, signaling a looming crisis of unprecedented proportions.

According to the Philadelphia Fed, the fourth quarter of 2023 bears witness to a grim milestone: more credit card balances are delinquent by 30+ and 60+ days than at any point in history. A staggering ~3.5% of credit card balances languish in arrears, a harbinger of economic distress on an unparalleled scale.

Yet, the grim tableau doesn’t end there. Total credit card debt skyrockets to a record $1.3 trillion, amplifying the strain on households already teetering on the brink of financial ruin. With the average credit card interest rate reaching an eye-watering 28%, the burden of debt becomes an unbearable weight on the shoulders of millions of Americans.

See also  YOU DON’T SAY: IMF’s Gopinath says high U.S. deficits fueling growth, higher interest rates.

In the midst of this economic maelstrom, a stark reality emerges: credit card debt is not the panacea for inflationary pressures. As net savings of Americans plummet to negative territory—a phenomenon witnessed only twice before, during the Great Financial Crisis and the COVID-19 pandemic—the specter of impending doom looms large.

The warning signs are unmistakable. With full-time employment waning and the housing market poised on the precipice of collapse, the nation hurtles towards an abyss of financial catastrophe. The echoes of past crises reverberate ominously, serving as a chilling reminder of the fragility of economic stability.

See also  Credit Card Delinquencies Hit 2012 Levels Despite Low Unemployment




Views: 821

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.