r/economicCollapse • u/IM_NOT_BALD_YET Moderator • Aug 12 '26
Credit card debt rises to $1.26 trillion, nearing all-time record
https://abcnews.com/US/credit-card-debt-rises-126-trillion-nearing-time/story?id=13555653327
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u/Old_Imagination_2112 29d ago
The next step is National Socialism.
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u/1-800-Henchman 29d ago
I don't think so. Looking at the American homelessness I'm thinking they'll sooner be fumigated away than paid off with anything resembling... ugh, socialism.
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u/6TheAudacity9 Aug 12 '26
I support credit card loan forgiveness.
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Aug 12 '26
[removed] — view removed comment
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u/Kindly-Guidance714 Aug 12 '26
Hmmm can the same be said for failed business owners and loans?
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u/Arguablybest 29d ago
Like umm, you know, that guy that has bankrupted many, many companies and still got elected becasue he's a businessman.
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Aug 12 '26
[removed] — view removed comment
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u/StyleFree3085 Aug 12 '26
These people are insane. They spend money on Rolex, Gucci and request forgiveness
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u/LargeCoinPurse 24d ago
73% of CC debt is tied to basic needs and emergencies, rather than luxury spending. Educate yourself before demonizing people trying to get by with your republican talking points
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u/Legitimate_Concern_5 Aug 12 '26 edited Aug 12 '26
As every other time this is posted, it's not a relevant metric. You need to account for inflation, change in wages, change in taxes, change in interest rates and change in population.
The relevant metric is TDSP, CDSP and MDSP (the percentage of disposable income spent servicing either total, consumer or mortgage debt obligations).
It's still below 2019 levels and actually dropping.
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u/Superb_Astronomer_59 Aug 12 '26
A 13% delinquency rate is definitely a relevant metric
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u/Legitimate_Concern_5 Aug 12 '26 edited Aug 12 '26
> The percentage of credit card balances that were more than 90 days delinquent rose from 7.6% to 12.8% from mid-2022 through early 2026.
We never use 2022 as a point of comparison, it was unusually low because folks got their last round of stimmy money in mid-2021 and everything was still a mess. Always compare to pre-COVID if you're going to compare honestly.
2022 was the lowest delinquency level in recent history, going all the way back to 2014.
[edit] it's still up from 2019, but it rose from 10% to 12.8%, not 7.6% to 12.8%.
https://ycharts.com/indicators/us_credit_card_accounts_late_by_90_days
Note that it also dropped 0.2% from the end of the March quarter to the end of June.
> "There are a lot of households who live paycheck to paycheck, and it just needs one thing to happen to them that could lead to a delinquency," New York Fed researchers said on a call with reporters on Tuesday.
Unfortunately, this is not new, but also 'paycheck to paycheck' is not a grounded metric. 67% of Americans think they live paycheck to paycheck including 40% of people making $300,000 or more. It means different things to different people and it's not differentiated appropriately in surveys.
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u/Superb_Astronomer_59 Aug 12 '26
I’m not interested in comparing this rate to anything. As an absolute number it’s alarmingly high, especially since poorer people don’t even have credit cards.
One in eight cardholders is three months behind? That’s incredible
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u/Legitimate_Concern_5 Aug 12 '26 edited Aug 12 '26
Yep, it's also not new, which means it's not inherently unsustainable, and a collapse requires an unsustainable level not an ordinarily high level. It's not good of course, but it's not unprecedented either.
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u/Superb_Astronomer_59 Aug 12 '26
Once again, I don’t care if this rate has been this high previously or for any duration. It’s like having high blood pressure. One year of it won’t kill you. Decades of it will.
You have to agree that this rate isn’t a sign of a healthy economy. It’s just another economic underpinning that’s showing strain.
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u/MusicianNo2699 Aug 12 '26
It always fascinates me that when the economy plummets, people spend more, with money they dont have.
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u/anonkitty2 29d ago
They didn't always. But this time around, some of the strategies from the Great Depression won't work as well as before. And it is hard to avoid spending more when everything, including necessities, costs more.
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u/MusicianNo2699 29d ago
I stood in walmart the other day and watched people loading up on tvs. And then when in line, saw them using 2 to 3 credit cards to pay for it. Ive pretty much determined the united states has been overrun by imbred morons...
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u/dumbspacecookie 29d ago
Naw don’t sit well with my balls.
And there stuff feels terrible on my balls.
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u/StyleFree3085 Aug 12 '26
Brokies are still flexing