Acccording to an Aug. 30 report from the Federal Reserve Bank of New York, credit card balances increased by $46 billion from last year, becoming the second-biggest source of overall debt last quarter.
While both student and car loans hit all time new highs at the end of the 1st quarter.
And so it comes as no surprise from Bloomberg that more US consumers are saddled with credit card debt for longer periods of time. According to a survey by CreditCards.com released on Monday, 60% of credit card debtors have been holding this type of debt for at least a year, up 50% from a year ago, while those holding debt for over two years is up 40%, from 32%, according to the online credit card marketplace.
And while total credit-card balances remain slightly lower than pre-pandemic levels, inflation and rising interest rates are taking a toll on the already-stretched finances of US households.
About a quarter of respondents said day-to-day expenses are the primary reason why they carry a balance. Almost half cite an emergency or unexpected expense, including medical bills and home or car repair.The Fed's figures include credit card and auto debt, as well as student loans, but does not factor in mortgage debt.
The Federal Reserve is likely to raise interest rates for the fifth time this year next week. Credit-card rates are typically directly tied to the Fed Funds rate, and their increase along with a softening economy may lead to higher delinquencies.
Total consumer debt rose $23.8 billion in July to a record $4.64 trillion, according to data from the Federal Reserve. -Bloomberg
Reader Comments
LOL!!!
That was entertaining. Thanks.
then don't pay back what you owe, tell them to shove it up their ass and force them
to make you pay back...
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yeah, why not that - why not a little debt chaos, countries in the world say plum no to imf fiat death of falseness built upon bully fiat pushing will this way and that upon our little neighborhood - fuck you bully!
Why not that?
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If it went worldwide, jubilee on the way soon but bullies always get what they deserve in the end and the end is near for bullies....so near.
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now for eff sake, you think your life is one where others will always bail you out, well grow up, get some integrity, because nobody is gonna save you when the shit hits the fan. So, instead of expecting some long lost uncle to always pay your bills, how about you take care of matter on your own and treat others with respect & not expect the effing losing god-damm gubment of dismay to meat your needs....if you can't do that than fuck you and let you swim with the fishies - because we are all sick of losers sucking on the teat of our hard earned river rock currency......you can take that to the bank.