Debt -- and Delinquencies -- Are on the Rise for Americans | Drudge Retort

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Friday, May 17, 2024

Debt -- and Delinquencies -- Are on the Rise for Americans

The economy has been resilient, the job market healthy and consumers keep spending, but more Americans are becoming financially overextended -- especially on their credit cards.

Posted by LampLighter at 08:32 AM | 20 COMMENTS | permalink | Comment on This Entry |

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... New data released Tuesday by the Federal Reserve Bank of New York showed that as household debt balances grew during the first quarter, delinquencies also marched higher. Notably, the percentage of credit card balances in serious delinquency (90 days or more late) climbed to its highest level since 2012.

"In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups," Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed, said in a statement. "An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households."

Aggregate delinquency rates increased during the first quarter to 3.2% of outstanding debt in some stage of delinquency, the highest since the fourth quarter of 2020, according to the New York Fed's latest Quarterly Report on Household Debt and Credit. The transitions into delinquency -- especially serious delinquency -- increased across all debt types, according to the report. ...

[apologies for the duplicate posting]

#1 | Posted by LampLighter at 2024-05-16 01:05 PM | Reply

It's a cycle...and it's obvious where we are headed.

#2 | Posted by eberly at 2024-05-16 01:24 PM | Reply

@#2 ... it's obvious where we are headed. ...

Where's that?

#3 | Posted by LampLighter at 2024-05-16 01:53 PM | Reply

slower growth...reduced consumer spending which will lead to job numbers being impacted........and everything that comes with that.

Probably a stimulus package or 2 that will be needed.

#4 | Posted by eberly at 2024-05-16 01:58 PM | Reply

@#4 ... slower growth...reduced consumer spending which will lead to job numbers being impacted..... ...

I'm not yet as optimistic as you seem to be about this.

The last time there was a consumer credit problem was back in 2008 when lenders were giving out sub-prime mortgages that they seemed to know the borrowers could not afford.

On the other hand, cruise lines and Walmart are currently saying business is doing great.

#5 | Posted by LampLighter at 2024-05-16 02:30 PM | Reply

Probably a stimulus package or 2 that will be needed.

#4 | POSTED BY EBERLY

Election year.

Even though some short term pain for a correct and some deflation to occur is likely better in the long run.

#6 | Posted by jpw at 2024-05-17 09:14 AM | Reply

In my job as a lender I've been called a bloodsucker (with comic results). With rates commonly over 20% credit card lenders are much closer to that description. In my view the use of credit cards is sensible IF the balance is paid off each month. this way, one is repaying their debt at a discount, thanks to inflation and the short-term return on cash. To willingly carry a balance on a credit card is probably the second worst financial mistake an individual can make (beside not saving for retirement).

For those with credit card debt: stop buying coffee, going out to dinner and buying prepared foods at the grocery. Learn to cook, stay home and make your own damn coffee. Pay off that debt, as fast as you can...

#7 | Posted by catdog at 2024-05-17 09:29 AM | Reply | Funny: 2

The economy is NOT healthy.

Sure, the big numbers look bigger. But they're only bigger for those at the top.

It's going to take MASSIVE tax increases on the rich and MASSIVE redistribution of wealth to fix this mess.

#8 | Posted by DarkVader at 2024-05-17 11:31 AM | Reply | Newsworthy 2

"It's going to take MASSIVE tax increases on the rich and MASSIVE redistribution of wealth to fix this mess."

Republicans think the best way to fix it is by cutting government spending.

Show me the nation in the history of the earth that achieved greatness through austerity.

#9 | Posted by snoofy at 2024-05-17 11:33 AM | Reply | Newsworthy 2

"MASSIVE tax increases"

maybe rethink that one.....how about strategic tax increases......

#10 | Posted by eberly at 2024-05-17 11:47 AM | Reply

"MASSIVE redistribution of wealth"
- Dark avoider

Government redistribution of wealth is taking from the middle class and giving to the wealthy.

#11 | Posted by oneironaut at 2024-05-17 12:10 PM | Reply

Tax cuts for the rich haven't worked.

The only other option is even greater tax cuts for the rich.

Signed,
Republicans

#12 | Posted by snoofy at 2024-05-17 12:19 PM | Reply

It's going to take MASSIVE tax increases on the rich and MASSIVE redistribution of wealth to fix this mess.

#8 | POSTED BY DARKVADER

So naturally we will be giving MASSIVE tax cuts to the rich and the poor will get the "trickle down".

#13 | Posted by donnerboy at 2024-05-17 01:05 PM | Reply

Republicans ALWAYS think it is better to suggest cuts for a). the Middle Class benefits,
b). discretionary spending and programs, c). things that help to prop up America's working poor
(which are like 40%) of the country...(little things like Medicare, Medicaid, Social Security)

ANYTHING but tax the rich! No, indeed, they've CUT the taxes for the rich 5 times since Reagan...

5 times! There is more than a temporary pattern here.

The GOP always serves the rich.
It has been that way since the 1980's and Reagan.
I know. I've lived through it and watched it happen.

That those who complain (especially on the right) cannot see this,
is unbelievable on the best of days, and absolutely ludicrous on
those days which are worse.

#14 | Posted by earthmuse at 2024-05-17 01:51 PM | Reply

"The GOP always serves the rich.
It has been that way since the 1980's and Reagan.
I know. I've lived through it and watched it happen."

The GOP is trained from birth to respond to this criticism with:
Did you ever get a job from a poor person?

Funny thing is, on four separate occasions, I have worked for this guy named Sam who is carrying thirty trillion in debt.

#15 | Posted by snoofy at 2024-05-17 03:09 PM | Reply

Government redistribution of wealth is taking from the middle class and giving to the wealthy.

#11 | POSTED BY ONEIRONAUT

Yes. That's what Republicans have been doing for almost 45 years. How's that working out?

#16 | Posted by Whatsleft at 2024-05-18 03:08 PM | Reply | Newsworthy 1

" Government redistribution of wealth is taking from the middle class and giving to the wealthy."

I just call it the Trump Tax Code.

#17 | Posted by Danforth at 2024-05-18 03:10 PM | Reply | Newsworthy 1

"Debt -- and Delinquencies -- Are on the Rise for Americans"

Americans could have slowed down on spending their pandemic stimulus. But since they don't want to face the problems they bring upon themselves, they'll blame Biden.

#18 | Posted by Whatsleft at 2024-05-18 03:13 PM | Reply

Bidenflation and Bidenomics

#19 | Posted by THEBULL at 2024-05-18 11:53 PM | Reply

"Bidenflation"

A direct result of Trump's $2.3 billion of tax cuts, ALL WITH NEWLY BORROWED MONEY.

Remind us what happens when too many dollars chase too few goods?

#20 | Posted by Danforth at 2024-05-19 12:39 AM | Reply

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