Delinquency rates among American credit card holders are at an all-time high, while at the same time a record number of “active accounts” have “a balance of over $2,000,” according to a Federal Reserve Bank of Philadelphia report.
We’re more than three years into the Biden presidency, so we all know where the blame lies.
More from Bloomberg:
Almost 3.5% of card balances were at least 30 days past due as of the end of December, the Philadelphia Fed said. That’s the highest figure in the data series going back to 2012, and up by about 30 basis points from the previous quarter. The share of debts that are 60 and 90 days late also climbed.
“Stress among cardholders was further underscored in payment behavior, as the share of accounts making minimum payments rose 34 basis points to a series high,” according to the report.
“About 10% of credit-card borrowers now have an account balance that exceeds $5,200, according to the Philadelphia Fed,” Bloomberg continues. “One-quarter of active accounts have a balance of over $2,000 for the first time.”
Credit scores in “the 10th and 25th percentiles of cardholders decreased to their lowest levels since the first quarter of 2020[.]”
There has also been a surge in those making only their minimum payments.
High balances, minimum payments, lower credit scores, record delinquencies… These are terrible signs of what’s happening out in the Real World. To begin with, unless you pay them off every month, credit cards are a sucker’s game — nothing more than legal loan sharking. Forbes reports that the “average credit card interest rate is 27.89%,” and it’s “not unheard of to encounter credit cards with APRs as high as 25% to 30%.”
They might as well call that vig. Good grief, those rates average more than two points per month. So, if you charge $1,000, that’s $20+ per month you are flushing down the toilet in interest.
Only desperate people subject themselves to that kind of abuse, but desperate we are in the Land of Bidenomics, where a corporate loan shark is the only way to make your monthly nut when a gallon of gas and a dozen eggs run about $4.00 each.
Credit cards are the first to go; then people start getting behind on rent, car payments, and the mortgage… Inflation is worsening, which means these interest rates won’t decrease soon. Gas prices just jumped to a national average of $3.63, which means that products and services that utilize energy will also increase in price, and pretty much every product and service utilizes energy.
The only tip I can give to those struggling is to fly to Mexico and then sneak across the border into Biden’s America. Then, you will receive free housing, free healthcare, and pre-paid credit cards worth thousands. When Democrats are in charge, you’ll never get ahead following the rules.
Borrowed Time is winning five-star raves from everyday readers. You can read an excerpt here and an in-depth review here. Also available on Kindle and Audiobook.
