"We are one bad payroll away from cracking monopolistic/oligopolistic dominance."
– BofA Hartnett pic.twitter.com/VEx0g30OgC
— Daily Chartbook (@dailychartbook) July 27, 2024
US Consumers Are Increasingly ‘Tapped Out’
Credit Card Delinquencies Reach Grim Milestone As Inflation Continues To Crush Americans
Credit card delinquencies reached the highest level since at least 2012 as Americans continue to grapple with high inflation and interest rates, according to a report from the Federal Reserve Bank of Philadelphia published Wednesday.
At the end of March, 2.59% of credit card balances were more than 60 days overdue, more than double the lows of the COVID-19 pandemic, and the highest since the Philadelphia Fed began tracking the data 12 years ago, according to the bank’s analysis of credit card and mortgage data. The same trend affected credit card borrowers who were 30 and 90 days or more past due.
Elevated credit card delinquencies could add to concerns about the U.S. economy, as consumer spending accounts for over 70% of the U.S. gross domestic product(GDP).
US households have piled on an enormous amount of credit card debt in just 3yrs (far faster than the previous cycles)
Meanwhile non-mortgage interest payments have exploded to record highs.
Lastly, credit card avg. carry balances ($7,500)
At record APRs, this is brutal pic.twitter.com/sdv4TboPWr
— Cejay Kim (@cejaykim) March 16, 2024