Another record-setting credit card balance has economists worried. While credit card debt topped $1 trillion for the first time just a couple months ago, consumers added $50 billion in new credit to that eye popping total.
“Even though $1 trillion in credit card debt is a staggering number to wrap your brain around, the unfortunate truth is that it is only going to keep climbing from here,” said Matt Schulz, chief credit analyst at LendingTree.
“Americans are still struggling with lingering inflation and rising interest rates,” he added, “forcing them to lean on credit cards more and more.”
Credit card delinquencies surged 50% last year with over 8% of balances in default.
What’s the plan to fix the ailing economy? First, we MUST reduce the level of spending. The US spent about $800 BILLION on just INTEREST to the $34 trillion dollar debt last year. That is not sustainable.
Help me return some normalcy to DC….vote Eddy For Congress in November.
https://www.newyorkfed.org/newsevents/news/research/2024/20240206
