BAD to WORSE: $628 Billion in Unpaid Debt, Housing Crisis, U.S. Consumers Are Struggling to Pay Bills

BAD to WORSE: $628 Billion in Unpaid Debt, Housing Crisis, U.S. Consumers Are Struggling to Pay Bills

Oct. 29, 2024

U.S. DOLLAR COLLAPSE - FOLLOW THE MONEY

World Affairs In Context

Amid rising living costs and economic uncertainty, American consumers are rolling over a record $628 billion in unpaid credit card debt every month. This unprecedented figure highlights the growing financial strain on households as they contend with soaring prices and depleted savings.

In the meantime, however, the S&P 500 rallied for its best year-over-year performance since 1954. Such remarkable gains in the stock market and other economic indicators have offset a previously growing fear of a recession. Yet, U.S. inflation is leaving its mark in other areas, for example related to the record credit card debt.

Inflation and record credit card debt

Over the past three years, revolving credit card balances have surged by $204 billion, marking a 52% increase. At the same time, the average interest rate on credit card debt has jumped to a record 25%, up from 15%.

Consequently, consumers are paying more in interest while struggling to pay down their balances, as highlighted by The Kobeissi Letter.

Moreover, prices in the United States have increased by approximately 20% on average. This inflation has pushed more Americans to rely on credit cards for everyday expenses. With $2.3 trillion in excess savings now depleted, many have little choice but to turn to debt.

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