As you can see from the chart below, credit card delinquencies are rising, but are nowhere close to the levels reached in 2008/2009. The “all is well” crowd will scoff at this as a warning sign for trouble ahead. These are the rich pricks who are benefiting from this dichotomous economy where the Haves reap all the benefits of inflation and the Have Nots get screwed over once again.
Prime credit card borrowers are doing just fine, for now. Meanwhile, the average working stiff with spotty credit is falling behind in their credit card payments at a skyrocketing rate, while accumulating interest at rates exceeding 20%.
It’s the small guys and the small banks that are bearing the brunt of the pain, just like the Too Big To Trust Wall Street banks have planned. They want another “financial crisis” where they pick up more middle class houses for pennies on the dollar and “rescue” hundreds of small banks by taking them over, to further consolidate their wealth, power and control over our entire economy. This is fine. Right?
Borrowers with a VantageScore between 300 and 600 across these four cohorts experienced an 8.9% delinquency rate — of 30 to 59 days — in July 2023, up from 7.49% a year earlier, VantageScore data reveals. Credit-card borrowers with a prime credit score (between 661 and 780) had a delinquency rate of 0.1% in July 2023, broadly in-line with the prior year.
Separate data support the VantageScore conclusions. Credit-card delinquency rates at smaller banks hit a record high of 7.51% in the second quarter of 2023, up from 6.01% at the same time last year, according to the Federal Reserve Bank. That contrasts with a lower delinquency rate of 2.63% in the second quarter at the top 100 banks, compared with 1.71% a year ago.
The percentage of credit card debt more than 30 days past due is up for 6 straight quarters.
Delinquency rates have nearly doubled since their recent lows and now stand at their highest since 2020.
All as credit card debt crossed $1 trillion for the first time in history.… pic.twitter.com/zTHWTlfDww
— The Kobeissi Letter (@KobeissiLetter) August 15, 2023
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Read the talmud. It’s in there!
Yep !
Sure is……
Downvotes must be the ADL protocol kicking in!…..
they don,t like you talking about the protocols
Student loan payments kick in next month.
Joe will fix it. He’ll kick the can down the road til the election. Afterall it isn’t his wealth that is being plundered.
Can’t wait to see the look on muh nephew’s face when THAT slaps him in it! Hell. He might have to sell the Porsche!
Saudis and Russians just extended production cuts while FJB never refilled SPR after buying votes and a government shutdown coming in October. It’s happening!
As the fake and gay economy continues to emerge through the cloud of covid gibs and wealth redistribution, I learn more about how much helicopter money was dropped and how the breakage continues to sort among the essential/non-essential divide.
The gibs wear off and reality emerges, time and again the story unfolding is that of a dead man walking.
Scores of value and future value were destroyed but were temporarily re-animated by “free” money and policy favoritism that is presently retreating like the sucking tide of a tsunami.
Just this past weekend some city family visiting recalled a handful of stories of their local economic circles and the circumstances of such and such business meeting its end or boarding the struggle bus. All of them took the ring; all of them in the grave or counting down the days. Old papa boomer proudly stating his advisor put him in moar bonds.
NPR chimes in with their lispy sauce of lies about some “community college” cosmetology grad who laments the coming college loan apocalypse.
Her personal story of using the covid forbearance period not to save money to pay back her debt but to borrow “thousands of dollars” more in the form of a business loan to start her hair parlor. And the problem is now her $4k of student loans might have to be paid back which will “destroy her business”. Of all the despair of predatory debt THIS is the anecdote they choose? Interesting.
$4000 of student loan debt?
Yes. she bought a community college cosmetology certificate. Maybe a year of “school”. Then used the free time to borrow more. And now its a systemic problem that someone else needs to solve. Thats part of what is so absurd. The messaging is so blunt at this point that the examples they use are irrelevant. The coming cascade failure needs to clean out more than just zirp debt and predatory inflationary traps. There is an insidious mindset among the masses that needs to be lobotomized by reality with a pickaxe.
They want a peaceful collapse without protest. If they tell the proles all is fine then it is perceived as fine.
You have to give them credit for the amount of BS they can get the sheep to buy.
Debt is the currency of serfs. Quit playing the Khazar’s game
Melty, you are right. Think about it. Most of the problems people have are the result of their own ignorance and stupidity.
Not accepting their lot in life and living within their means.
Yep. That’s definitely “stupid”.
Tattooes, TV’s, phones, cars and other overpriced UNNECESSARY junk. Buy only what you can pay for quickly or right away. Let the Chinese go broke selling their plastic crap.
I heard credit card debt is no longer discharchable in bankruptcy. True?
Apparently you don’t completely trust your source or you wouldn’t be asking.
All I know is you’d do well to start shedding debt as fast as humanly possible…financially AND spiritually.
We’re all of us running out of time.
I have no debt.
Just sitting back with my popcorn watching the decline.
Me too. Getting ready to buy good stuff cheap.
10 acres and a backhoe sounds like Heaven to me right now!
Kroger has some great cheddar & carmel popcorn. Great for watching the disaster now playing in your neighborhood.
Fuck those people. What is borrowing for consumption as opposed to investment anyway?
Credit cards (loan snarking). Should be outlawed. Maybe then there would be more money available for investment in the future.
Credit is a learned behavior. I learned it from my father. He had a new car every 2 years. Never was in over his head but still my mother commented once about how they would have had more. Fortunately he had life insurance and she was able to pay off the house.
I watch TV at night for an hour or so and the commercials are about trying to either kill them with pharma or getting them deeper in debt from increasing their credit score or loans. I haven’t had consumer debt in almost 10 years and now no more mortgage. Paying off the house was tough because I like my toys
Melty,
Always had a new convertible, tricked out Van, 4 wheeler (usually two at a time) until I completely flipped on living the American (debt) Dream that really is the American (debt) Nightmare, and took a contrarian path at 49 in 99.
There are many paths but chronic debt and too many toys can lead to working in Home Depot in your 60’s & 70’s…if you still have the legs for it. I see them there all the time, and they look miserable.
One of my favorite movies was ‘LET IT RIDE’ up until I saw many working until they couldn’t because they had to…and I wanted out of that fate ASAP.
Now, I opened my own consulting company at 55 and put it all on the line…but I rolled nothing but sevens and elevens. Sometimes the bear eats you…and sometimes the bear makes a nice rug. I walk on my rug barefoot and laugh out loud.
Still driving a 2000 Honda and 2001 Mazda pickup…and I could drive anything I wanted…put the savings into land, self-sufficiency, and real (precious) money.
But I do have my eye on a new modest Zero turn mower toy with one addition.
What about a new roofing contracting biz?
You could call it “DEW Proof Roofing”
“They come in any color of blue.”
Lol.
Yeah, I’m 62 an ready to do something different. We got bought by a large public outfit that is significantly owned by Blackrock, Vanguard and State Street and have seen my pay plummet. I need a new gig so I can stash some cash and pick up a couple of toys before retiring.
The best way to win is to Not play!…..