(The Economic Collapse Blog)—Did you know that U.S. households are 17,690,000,000,000 dollars in debt? Of course household debt is only one part of a much larger story. The federal government is 34 trillion dollars in debt, state and local governments are absolutely drowning in debt and unfunded liabilities, and corporate debt is at an all-time high.
As a society, we are on the greatest debt binge in the history of the world, and it just gets worse every single year. Previous generations handed us an economy that provided us with an incredibly high standard of living, but we always had to have more. So we have been borrowing and spending with no end in sight, and now our day of reckoning is fast approaching.
According to the New York Fed, U.S. household debt surged to another record high during the first quarter of this year…
In the first three months of 2024, total household debt surged to a fresh record of $17.69 trillion, an increase of $184 billion, or 1.1% from the previous quarter. The increase mostly stemmed from a jump in mortgage balances, which rose $190 billion from the previous quarter to $12.44 trillion at the end of March.
If we could handle all that debt, there wouldn’t be much cause for alarm. Unfortunately, delinquency rates are rising.
In fact, the proportion of credit card balances in serious delinquency has risen to the highest level since 2012…
A growing number of Americans are falling behind on their monthly credit card payments as they continue to battle high inflation and interest rates, according to New York Federal Reserve data published Tuesday.
Credit card delinquencies, which have already surpassed their pre-pandemic levels, continued to rise in the three-month period from January to March.
The flow of credit card debt moving into delinquency hit 8.9% in the first quarter at an annualized rate, compared with an 8.5% rate the previous quarter and 5.87% at the end of 2023. In fact, the percentage of credit card balances in serious delinquency climbed to its highest level since 2012.
In 2012, we were just coming out of the Great Recession.
Maximize savings. Support great patriot Mike Lindell. Use promo code “JDR” at MyPillow and take advantage of the $25 EXTRAVAGANZA happening right now.
Now a new economic crisis has begun, and millions of U.S. households are teetering on the brink of financial disaster.
If you use credit cards, it is so important to pay them off in full every month. Unfortunately, approximately 44 percent of all cardholders do not do that…
Overall credit card balances totaled $1.115 trillion in the first quarter of the year, $129 billion more than last year. For card users who pay their balance in full every month, that’s not a problem. But according to Bankrate, roughly 44% of borrowers carry credit card debt over from month to month.
It has always been financial suicide to carry credit card balances from month to month, and that is especially true today because interest rates are so ridiculously high…
The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high. The average credit card annual percentage rate, or APR, hit a new record of 20.72% last week, according to a Bankrate database that dates to 1985. The previous record was 19% in July 1991.
If people are carrying debt to compensate for steeper prices, they could end up paying more for items in the long run. For instance, if you owe $5,000 in debt, which Americans do on average, current APR levels would mean it would take about 279 months and $8,124 in interest to pay off the debt making the minimum payments.
I always encourage my readers to pay off high interest debt as soon as possible.
If you have credit card debt, eliminating it should be your number one financial goal. Sadly, the New York Fed’s new report tells us that an increasing number of Americans are getting behind on their credit cards and their auto loans…
The Fed’s report showed 6.9% of credit card debt transitioned to serious delinquency last quarter, up from 4.6% a year ago. And for credit card holders aged 18–29, 9.9% of balances were in serious delinquency.
Auto loan delinquencies are also higher as the average monthly car payment jumped to $738 in 2023. Close to 2.8% of auto loans are now 90 or more days delinquent — that equates to more than 3 million cars. Auto loans are the second-largest debt category following mortgage debt, with $1.62 trillion outstanding.
Tens of millions of U.S. households have severely overextended themselves financially.
When you get to a point where you are so far in debt that you can barely make the minimum payments, it can feel like you are “trapped” with no way out…
High interest rates are pushing low- and moderate-income Americans who have fallen behind on credit card payments and auto loans to the brink, according to a new report.
“It’s crazy,” 43-year-old Army veteran Ora Dorsey told The New York Times. “It does make it hard to get out of debt. It seems like you’re only paying the interest.”
“We don’t have the credit to be able to buy a house, and we have a bunch of debt, either student loans or credit card debt,” 31-year-old Chris Nunn, who drives for the DoorDash delivery app, told the Times. “So we’re trapped.”
Dorsey told the outlet she has been trying to cut down debts accrued following various health issues for years. She is working three jobs to cut down her substantial debt.
Today, Americans are more pessimistic about the economy than they have been in a very long time.
It can be absolutely soul crushing to work as hard as you possibly can and still not have enough money for all the bills.
If you are feeling a tremendous amount of stress about your finances, you are certainly not alone.
According to one recent survey, approximately half of the entire population is struggling with mental health issues due to financial stress…
About half of U.S. adults are struggling with their mental health because of their financial situation.
Forty-seven percent of adults say concerns about money have, at least occasionally, caused anxiety, stress, worrisome thoughts, loss of sleep, depression or other effects, according to Bankrate’s latest Money and Mental Health Survey.
About 65% of them say their biggest concern is inflation and rising prices, and nearly 60% say their stress derives from paying for everyday expenses such as groceries and utilities. About 56% say they are worried about having enough emergency savings, and 47% are most concerned about being in debt, according to the survey.
After seeing numbers like that, how in the world can anyone possibly claim that the U.S. economy is in good shape?
Keep it simple. Avoid the scams. Let Genesis rollover your retirement accounts into a self-direct IRA backed by physical precious metals.
The level of economic pain that we are already witnessing is absolutely staggering, and conditions are only going to get worse during the chaotic months and years that are ahead of us.
But even though our leaders continue to make incredibly reckless decision after incredibly reckless decision, many people out there continue to be convinced that everything is going to work out just fine somehow.
Join the free Economic Collapse Substack and get occasional emails while joining the conversation.
Michael’s new book entitled “Chaos” is available in paperback and for the Kindle on Amazon.com, and you can check out his new Substack newsletter right here.
Controlling Protein Is One of the Globalists’ Primary Goals
Between the globalists, corporate interests, and our own government, the food supply is being targeted from multiple angles. It isn’t just silly regulations and misguided subsidies driving natural foods away. Bird flu, sabotaged food processing plants, mysterious deaths of entire cattle herds, arson attacks, and an incessant push to make climate change the primary consideration for all things are combining for a perfect storm to exacerbate the ongoing food crisis.
The primary target is protein. Specifically, they’re going after beef as the environmental boogeyman. They want us eating vegetable-based proteins, lab-grown meat, or even bugs instead of anything that walked the pastures of America. This is why we launched a long-term storage prepper beef company that provides high-quality food that’s shelf-stable for up to 25-years.
At Prepper All-Naturals, we believe Americans should be eating real food today and into the future regardless of what the powers-that-be demand of us. We will never use lab-grown beef. We will never allow our cattle to be injected with mRNA vaccines. We will never bow to the draconian diktats of the climate change cult.
Visit Prepper All-Naturals and use promo code “veterans25” to get 25% off plus free shipping on Ribeye, NY Strip, Tenderloin, and other high-quality cuts of beef. It’s cooked sous vide, then freeze dried and packaged with no other ingredients, just beef. Stock up for the long haul today.
#NeutralizeTheDemoNcratParty (the original party of slavery, the KKK, Jim Crow laws, continued modern racism and new slavery methods) – F A C T S
#WakeUp
#WalkAway
American #Hispanics4TRUERepublicans 🇺🇸 (POC are going to change the narrative, just look at our current polling)
VOTE A STRAIGHT REPUBLICAN TICKET IN 2024 for regained Rule of Law!
A Republican majority is required to do so.
*I did NOT say vote for a RINO
…yes, I do miss the Trump Presidency…best four years I can remember in my short life time of nearly 80 years on this planet…