Preps and Solutions
(Sponsored Ads)
Silver
Strategic Relocation
Recently Posted Articles and Videos
Ready Nutrition - Homesteading and Preparedness
Ready Gardens - A Ready Nutrition Company
The Daily Sheeple
The Prepper Website
SGT Report
The Daily Coin
top Prepper Web Sites
Featured Destinations
The Liberty Mill
Web Destinations

Clarocet for Kids
Silver

Economic Downturn: Credit Cards Aren’t Being Paid, Accounts Are Being Closed

Mac Slavo
December 6th, 2018
SHTFplan.com
Comments (31)
Read by 4,273 people

A new report is shining some light on an indicator that the economy is about to take a major downturn.  Credit card accounts are not being paid and some accounts are being closed in anticipation for an upcoming recession.

Credit-card delinquencies, application rejections, and involuntary account closures are all on the upswing, according to a report from the Federal Reserve Bank of New York. According to Business InsiderThe Fed says these developments reported are “potentially concerning” given the strength of the economy and comparatively low interest rates.  Does the Fed not remember that they themselves have been jacking up the interest rates for months now? Sure, they are still relatively low, but that’s little consolation for the person who lives paycheck to paycheck and just saw another rate hike.

The Fed released the results of this report this week. It’s called the “Credit Access Survey” which is a quarterly report on United States borrowers. It brought to the surface a couple of alarming trends that suggest credit-card issuers are getting skittish and paring back risk: Both credit-card rejection rates and involuntary account closures are on the rise.

A separate New York Fed report released last month, the “Quarterly Report on Household Debt and Credit,” produced a similar finding. The report, which mines Equifax consumer credit reports for data, showed an uptick in the past year and a half in account closures, again primarily from credit cards.

The reason credit card companies may be closing accounts and rejecting borrowing increases is that they may be spooked by the increasing number of people who already aren’t paying off their cards. Credit-card delinquency rates began to climb sharply toward the end of 2016, a trend that hasn’t reversed in 2018, according to Fed data. And it’s a trend that will more than likely continue to get worse as the cost to service those loan increases (interest rates rise.) It also could mean that many card companies issued debt too freely and to less-trustworthy borrowers in preceding years and are now trying to reverse course knowing that many will be put in a position of being unable to pay back what they have borrowed.

This is a bad sign for the economy because as people lose their jobs or begin to struggle financially, credit cards tend to be one of the first bills they stop paying, as compared with secured loans for a home or a car because people risk losing those crucial assets. If the economy is turning, card issuers have a pretty huge incentive to get ahead of the trend, especially amid the environment of climbing interest rates, which makes financial life even more difficult for cash-strapped cardholders.

Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.
The Most Trusted Tactical Gas Mask In The World
Please Spread The Word And Share This Post

Author: Mac Slavo
Views: Read by 4,273 people
Date: December 6th, 2018
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

31 Comments...

Vote: Click here to vote for SHTF Plan as a Top Prepper Web Site
  1. Sooo jack up the credit and hope they close the account, ok.

  2. Genius says:

    Do it if you dare, leaping from the sky
    Hurling through the air, exhilarating high
    See the earth below, soon to make a crater
    Blue sky, black death, I’m off to meet my maker
    Energy of the Gods, adrenalin surge
    Won’t stop till I hit the ground, I’m on my way for sure
    Up here in the air, this will never hurt
    I’m on my way to impact, taste the high speed dirt
    Paralyzed with fear, feel velocity gain
    Entering a near, catatonic state
    Pressure of the sound roaring through my head
    Crash into the ground, damned if I’ll be dead
    Energy of the Gods, adrenalin surge
    Won’t stop till I hit the ground, I’m on my way for sure
    Up here in the air, this will never hurt
    I’m on my way to impact, taste the high speed dirt
    Jump or die!
    Dropping all my weight, going down full throttle
    The pale horse awaits like a genie in a bottle
    Fire in my veins faster as I go
    I forgot my name, I’m a dirt torpedo
    High speed dirt, high speed dirt
    High speed dirt, high speed dirt
    High speed dirt, high speed dirt
    High speed dirt, high speed dirt
    Songwriters: Dave Ellefson / Dave Mustaine
    High Speed Dirt lyrics © Sony/ATV Music Publishing LLC, Warner/Chappell Music, Inc

  3. slewfoot says:

    genius a nearly brain dead person

    • The Deplorable Renegade says:

      Now we have a troll named slewfoot. What kind of name is that?

      • Genius says:

        Must have stepped in somethin’ stinky lol. Probably antifa!

        • Genius says:

          WHAT? You mean they can’t afford their McMansion and the 2 new 60K cars and 3 kids and all the soccer and cool clothes? What about the mancave you made to impress your mental midget friends? And your spendthrift wife with her 10 credit cards all maxed out? How could this happen? AAAKKKKK! SOMEBODY CALL THE WAAAAAAAMBULANCE!

      • Probably Canadian:

        Slewfoot

        “A dangerous play where a player comes from behind an opposing skater and trips the player unexpectedly by dragging the skate so the victim falls to the ice and quite often hits his head or lands hard due to the sneaky nature of the crime.”

        More ingenious than most handles here.

  4. john stiner says:

    I just had to serve a notice to vacate for a non-paying tenant.

    First time I have had to do that in 18 years.

    • Genius says:

      Damn yer lucky! I used to work for a guy that had a bunch of rentals. We spent a lot of time rehabbing after he had to kick them out. Man people can be DISGUSTING! And it’s a pain in the arse to kick them out.

  5. The Deplorable Renegade says:

    Looks like a lot of people will going into bankruptcy. I don’t make enough money to even WORRY about credit so it’s no skin off my nose. As long as I can get a vehicle for cash from someone on craigslist I’ll be just fine.

  6. Lineman says:

    I’m shocked….you mean not everyone is buying $70,000 Super Duty. (Sarcasm Off)

  7. aljamo says:

    Credit card, what’s that? The heavy woman doing jumping jacks above is too funny.

  8. The Deplorable Renegade says:

    Lineman, like I said, I don’t qualify for financing due to my income so going to someone for cash is my ONLY option. All I can afford is something on ‘life support’, LOL.

    • Genius says:

      DR, ya I do just fine without that shit. So nice to NOT be under that black cloud of debt. If I have an emergency need for cash that I don’t have I just sell some metals. 18 years of no CC debt! 22 years of stackin’ 🙂

      • Genius says:

        Speaking of stackin’ I know this guy that had an antique store and also bought gold and silver coins/scrap. We used to sit and BS about coins (I used to collect) and he told me someone came in and sold him a bunch of silver dollars. He was scanning through them a few days later and found a 1893s morgan in super good condition. He had it graded and encapsulated and sold it for 250,000 bux! If I had the seed money (about 50k cash) I might consider doing the same. Another friend of mines wife worked at a 7-11 and some girl would come in and trade her silver dollars for a pack of smokes. Think of how many very valuable dates/marks you could find if you did that!

      • The Deplorable Renegade says:

        Genius, AMEN to that. I’ve always said there’s advantages to being debt-free. A whole lifetime of being debt-free and many years of stacking.

    • Anon says:

      Hi DR; We have had this conversation before. What’s the problem with credit cards if you pay them off every month?

      • Someone in the Back Room says:

        Nothing, other that enabling the establishment and destroying your anonymity every time they are used.

        • Genius says:

          ^^^ THIS ^^^ “cardtard”

        • Anon says:

          Someone;
          Do you really think that without using credit cards you are off of the radar? If you own anything you are visible. The people living on the sidewalks of San Fran and La are probably not even without traceable records. I don’t think my credit cards reflect who I am. If all goes to hell I may simply not have to make the last payment. If I walk in a store and hand the clerk a 100 dollar bill their eyes roll back. How is this possible in a world where ghetto rent is $700 a month? I know going Gault is a popular term. How practical is it? Not meaning to be rude, but a lot of the posts on here are not realistic.

          • Someone in the Back Room says:

            Do you really think that without using credit cards you are off of the radar?
            No. The statement had to do with the use of said credit cards and what it’s effects can be. We all should realize that we are all “in the system”. Whether we like it or not, we all have a digital footprint somewhere.

            I don’t think my credit cards reflect who I am.
            Not totally. But it does give insight as to what you do with said cards. It’s a record that profiles your spending habits.

            If I walk in a store and hand the clerk a 100 dollar bill their eyes roll back. How is this possible in a world where ghetto rent is $700 a month? I know going Gault is a popular term. How practical is it?
            It’s not very practical these days. But that doesn’t mean one has to go all digital, everyday. Cash has its uses as does digital. But cash has the unique ability to keep you anonymous when you purchase certain items, items that you don’t want others to know about.

            Not meaning to be rude, but a lot of the posts on here are not realistic.
            Don’t worry about rudeness, it happens. Realistically, we all have viewpoints, some more realistic than others – take your pick on who has the best advice. This happens no matter where you go.

            One shouldn’t come here to argue, but to learn and pass that on. But we don’t always get what we want.

            Good luck

            • Philosopher Deplorabilis says:

              People often take my direct manner of adult-to-adult level speaking as rude. It is not. That is how I expect other adults to speak to me. It is surprising as to how easily some people choose to be offended or choose to perceive something as rude. I view that as their personal problem. Not mine.

              • Someone in the Back Room says:

                It is surprising as to how easily some people choose to be offended or choose to perceive something as rude. I view that as their personal problem. Not mine.

                The operative word is “choose”, as in choice. And correct, they do get offended. Why? Probably because one doesn’t ascribe to their way of thought, their viewpoint(s), their way of life (even if it is unrealistic). And this is why some of their personal problem(s) usually always spill over onto us.

                Golden Rule:
                “Do unto others as you would have them do unto you.”

                But, if they still don’t take the hint, then reverse the rule. This should not be taken as to do it daily, but in extreme circumstances it might be necessary.
                “Do unto others as they do unto you.”

                It sure is nice to discuss rather than shout.

                • Philosopher Deplorabilis says:

                  Indeed. Rational debate used to be the standard that was expected, amongst rational adults.

                  This obsession with feelings, in the current era, is overreach of the worst kind. It allows sophists, and others, to manipulate people at a core level. Of course, that emotional manipulation and blackmail does not work on everyone. If you have a firm center core, it is like the tantrum of a child. Loud and unpleasant, but brief.

                  It is astounding that people have claimed I am responsible for their emotions! I have no superpowers, I have no magic box, I have no keypad where I can input how I want someone to respond. Nonetheless, this is a claim that I have heard. First they will accuse the other person of manipulating or controlling or being responsible for their emotional outburst and, when you fail to respond to that outburst, you are secondarily accused of being unfeeling and not caring! This puts you in a lose/lose position. Nothing you say will appease them, thus, they win and you lose.

                  It is a terrible position to put someone in as there is no way to exit gracefully when another person is accusing you of being able to control them. Apparently at will! It is a very dangerous form of magical thinking which is now rampant. People have not learned accept responsibility for their own behavior and this is the outcome. It is always easier to blame someone else than to accept responsibility, and admit, one’s poor behavior.

  9. Anon says:

    I should have added. We are pretty prepared for hard times. We also live in a rural area. I order a lot of parts for my shop. I typically use pay pal when I can. What on earth do you do for purchasing things that you use in your trade or hobbies. If you don’t live near a major city I find it hard to believe you can not use credit.

  10. Philosopher Deplorabilis says:

    I have credit cards. I pay them off, in full. They are a convenience for me.

    I hate paying interest. I hate being in debt. I do have a mortgage, fixed, at 2.875% fixed, 30 year. My PITI is $1000 a month. There is no way in hell I could rent a 2 bedroom, 2 bath, fenced back yard with 2 car garage house for $1000 a month in my area. A crap studio apartment with Section 8rs goes for that.

    Which is why I am looking to get a van / small travel trailer and motor around the US while I look for a new home town. Wyoming and Montana are at the top of my list. Yeah, it’s cold. Good. Keeps out the riff raff! My neighborhood is getting way too dark with Section 8rs. Scary.

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Commenting Policy:

Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn't immediately available. We're not trying to censor you, the system just wants to make sure you're not a robot posting random spam.

This web site thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.

 

Web Design and Content Copyright 2007 - 2015 SHTF Plan - When It Hits The Fan, Don't Say We Didn't Warn You - All Rights Reserved

Our Supercharged Intel Xeon E5-2620 v4 Octo-Core Dual Servers are Powered By Liquid Web

Dedicated IP Address: 69.167.174.108

The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.

SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.