“All stages of delinquency rates now exceed pre-pandemic levels for the first time,” Fed economist Gene Huang and senior analyst Anna Veksler wrote in the report.
In even more bad news, the Fed researchers found that only 33.18% of accounts paid their balance in full—suggesting that 1 in 3 Americans are carrying a balance every month.
That’s the highest level since 2020.
Since 2020, “the share of accounts making the full payment has moderated, driven by strong consumer spending and dwindling government support,” the researchers said.
“Greater consumer fragility,” as the Fed described it, makes banks think twice before granting new lines of credit. According to the researchers, banks’ rejection rate today is the highest in the past year.
Student debt is another mounting issue after the government resumed mandatory payments in October. So far, millions of borrowers have refused to pay.
@S3curityRelishPatriot3mos3MO
I say this every chance I get on any related article: Don't buy stuff made in countries that hate the US and are trying to destroy our economy and our (mostly) young minds. I saw a CNBC segment yesterday touting TikTok, Temu & Shein as the top places for black Friday purchase. Isn't that nice? Free ads for our good friends to the East (I better not say the "C" word or I might get monitored!)
Look for "country of origin" on online purchases. And look at tags in store.
@CapitalistFrankieDemocrat3mos3MO
When Clinton left office with budget surpluses, economists were wondering what would replace U.S. bonds after they disappeared in 11 years.
Then G W Bush decided to fight two wars while lowering taxes to the very rich, resulting in record deficits.
Then Obama lowered Bush's $1343B record annual deficit to $481B, REDUCING non-manatory spending.
Then Trump quickly raised the annual deficit to over $1000B.
So you think it's the Democrats who don't care about debt?
What color are the skies in your world?
@HolisticXerusRepublican3mos3MO
The National debt increased over $8trillion during Obama’s tenure so you may want to check your facts. To further complicate your bias, Congress votes on a budget and the President signs it. The sky is blue.
I was trying to avoid calling it Bidenomics but couldn't find another name for it. Inflation has eaten away the buying power of the dollar. Inflation caused by Government Stimulus. When things cost 20 to 30 percent more than a few years ago, its not surprising that credit card debt is rising.
@HopefulS0v3reignDemocrat3mos3MO
might want to educate yourself a bit then you’ll have plenty of other names. The president isn’t God of the US economy rofl. He can’t even pass legislature. Further Trump and Republicans pumped 8 trillion (that’s with a T) into the economy and he pushed down interest rates (old man yelling at the Fed) AND then they cut taxes increasing the cash sloshing around. Yet you’re confused why we have inflation?
Yes democrats haven’t helped either, they’ve spend big- but oddly much less!
Credit cards are useful if you pay the balance every month. Otherwise, they are a debt trap for unwise Americans.
@Lying1969Democrat3mos3MO
I just helped my college-aged son get his first credit card. He's very good with his money and never spends more than he has, so he's always using his debit card. Having to explain the need for a credit card simply for building a credit history was confusing to him. I told him that many other countries don't have this type of set up, but you must play the rules if you want any type of loan in the USA. He'd rather just continue using his debit card for simplicity.
If only other Americans went by the adage of "don't spend what you don't have".
@ISIDEWITH3mos3MO
@ISIDEWITH3mos3MO
@ISIDEWITH3mos3MO
@ISIDEWITH3mos3MO
@Eliana_2018Republican3mos3MO
Credit card delinquencies are at record levels, and many Americans can’t afford to pay for essentials like gas and food.
At the SOTU, Biden claimed victory for an economic recovery that doesn’t exist!
You have to travel back to the 70s to see economic data like this.
@NourishingBassDemocrat3mos3MO
For all the time economies have existed people still can't figure out that when you kill the goose laying the golden eggs, you don't get any more eggs.
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