With savings rates at near-record lows, you have the perfect storm. ⛈️ t.co/3h3h5vXzaP pic.twitter.com/ng2y457iqa
— The Great Martis (@great_martis) October 8, 2024
They’ve maxed out their balances. There’s no more pretend money to spend.
Credit Card Spending Tanked in August; The American Consumer Tapped Out?
How close are Americans to hitting their credit card limits?
That’s hard to say, but based on the latest consumer credit data from the Federal Reserve, they may be getting closer.
Over the last several months, American consumers have been yo-yo-ing between slowing credit card spending and going on spending sprees. In July, revolving credit, primarily made up of credit card debt, spiked. But in August, credit card balances contracted significantly.
It appears things are getting shaky for Americans buried in debt, and that is bad news for an economy that relies on people buying stuff on credit to keep running.