Today the Federal Reserve Bank of New York released new broad economic data for Quarter 2, revealing that Americans are habitually swiping the credit cards trying to stay afloat as the dollar continues to purchase less and less.
Of the data the Feds released, for the first time in American history credit card debit in aggregate has surpassed $1 trillion. Total credit card indebtedness rose by $45 billion in the period April to June, representing an increase of 4.6%. Thus, the total amount owed is $1.03 trillion, the highest gross value the Federal Reserve has ever recorded since publishing the statistics since 2003.
‘Credit card accounts expanded by 5.48 million to 578.35 million. Aggregate limits on credit card accounts increased by $9 billion and now stand at $4.6 trillion,’ the NY Fed also noted.
The Fed said, “Compared to other debt categories this quarter, credit card balances saw the most pronounced worsening in performance, following a period of extraordinarily low delinquency rates during the pandemic.”
Currently the federal interest rate is at 5.5%, after the Federal Reserve raised it another 25 basis points, the highest rates have been in 22 years. This of course means that repaying the credit card loans are only going to be even more expensive, even especially more so as Fed Chair Jerome Powell has indicated that there is a chance at least one more rate hike is coming this year.
Other debts and deficits increased as well. Retail cards and other consumer loans reportedly increased by $15 billion; along with auto loan balances rising by $20 billion, bringing the total to $179 billion.
A lot could be said concerning auto loans in the United States. In the words of the World Economic Forum, the group warned in a post: “The auto loan crisis of America.”
Moreover, to conclude it all, beyond just credit card debt rising to new monumental heights, total U.S. household debt reached a whopping $17.06 trillion in the second quarter, another record set.
AUTHOR COMMENTARY
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
The debt levels are just nauseating, I mean, it’s hard to even put into words how ridiculuous this all is.
Americans are slaves of their oppression, gluttons for punishment, that have an unquenchable lust for crap they don’t need and can’t afford; “Whose God is their belly” (Philippians 3:19).
And this is just the tip of the iceberg of economic problems:
As noted in this report, America has a serious auto loan problem. I mean, if the WEF is saying it, then you know it’s gotta be astronomical. But that’s just one problem: then we have home mortgages and the housing bubble that continues to blow some air from that massive bubble; and then we have seismic problems in commercial real estate and office buildings, as interest rates continue to kill the landlords as traffic is down, occupancy has halved in most major cities, costs of everything continue to rise – many of these landlords are just overturning these expensive properties to the banks; but the banks cannot eat these vacant buildings because they are insolvent, for the problems that plagued Silicon Valley Bank plague all the rest. Ladies and gents, we are going to have a banking blow-up the likes of which have never been seen before; and the loss of life and enslavement it will cause and come of it will be massive.
Collapse: Heartland Bank And PacWest Collapse, Barely Receiving News Coverage
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Work hard to get out of debt, as many of us are, It’s my own fault, but I will get it done; by and with God’s help and prayer. Just so you know I DO NOT ask God for money, I ask for His guidance in getting my debt down and being cautious with the purse strings. Young folks DON’T try to get credit it only leads to more problems. Trust this old putz and if ya can’t afford it don’t buy it!!
Very true. The LORD also gives provision for whatever we are in need of. Yes pay off the debt.
Since there is a chance these banks will steal our money anyway, just as they did in the Depression years of the 30s, I’ve been a little more free in spending, but I never spend what I can’t pay back immediately if necessary. That is not the case for many, I know. However, even if we are dealing with a government who loves to steal from its citizens, it is still important to remain as debt-free as possible. The banks hate it when you do NOT have a mortgage and your car is paid off. I try to do everything the banks hate in that regard.
This is why my wife and I have made such big sacrifices financially since we got married. We wanted to be debt-free. No cable, very little eating out, very few trips. A vacation to mostly visit family every so often.
Just paid our house off last month, 10-1/2 years into a 30 year mortgage. No car pmt, no credit card debt. It CAN be done. While many people cannot even imagine being at this point, I used to feel the same way – like we’d never get there. Pray and ask God to help you restrain your spending.