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America’s Debt CRISIS: Consumer Credit Card Debt Continues To Rise

Mac Slavo
April 9th, 2019
SHTFplan.com
Comments (16) Read by 1,767 people

American consumers continue to spend money they don’t have by borrowing it.  As the problems in the economy compound, the rising levels of consumer credit card debt could make any economic downturn all but impossible for so many to come out unscathed.

Americans with some student loan debt, credit card debt, car loans, and payday advances are normal now.  Living paycheck to paycheck is the new normal for most Americans, and as debt and taxes eat away at the middle class, too many are not at all concerned with their poor decisions regarding money.

According to Payments Journal, while the accumulation of credit card debt slowed, it did not halt, which signals that Americans are still stuck in the consumer mindset as opposed to the saver one While many Americans owe more in mortgage and student debt than any other type, they also carry credit card, auto, and medical debt, the latter of which is the number one cause of personal bankruptcy filings in the country.

And while the economic data has been weaker than expected, consumer confidence remains high.  This confidence is also a bit concerning considering the rapidly snowballing “retail apocalypse” we are all living through right now. Perhaps what’s most alarming is who confidence rose among…

The March gain in the Sentiment Index was entirely due to households with incomes in the bottom two-thirds of the income distribution, posting a gain of +7.1 Index-points, while households with incomes in the top third fell by 1.1 Index-points. So, basically, the wealthy have been feeling the need to save more and spend less while those who earn less are feeling confident spending more money.

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Payments Journal further reported that the takeaway is this: growth is still healthy, though credit unions have outpaced banks in growing their credit card portfolios. But, delinquency outside top issuers deteriorated. It is likely a good time to trim back some growth, or at least tighten standards beyond the realm of top credit card issuers.

Making it harder for Americans to rely on debt is a good thing, but while so many are still wanting to borrow money they have not yet earned, it makes it tough for creditors to reign it in.  Reliance on debt for daily living is a problem that will eventually need to be grappled with.  But for now, everyone seems content to kick the can down the road.

 

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Author: Mac Slavo
Views: Read by 1,767 people
Date: April 9th, 2019
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.

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16 Comments...

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  1. Yohan Smythe says:

    The banks should have learned the last time.

    Let them fail this time.

    • Kevin2 says:

      Yohan Smythe

      “The banks should have learned the last time.”

      They learned very well last time.

      1. They’re “too big to fail”

      2. The Federal Government will bail them out.

      Under no circumstances will they be allowed to fail. They need to be regulated to prevent irresponsible lending which is unlikely too. Once the crash occurs the focus will be entirely on stabilization. Once that occurs regardless of “cost” (remember its money from thin air) grandiose speeches along with proposed legislation of great title and in the fine print little substance (the devil is in the details) will be enacted pacifying the masses but not correcting the causes. Monies used to bail out the “too big to fail” entities will be syphoned off as much as possible. The formerly pre Glass Steagall illegality will once again be merely unethical known as business as normal.

      • Frank Thoughts says:

        All true. They changed the legislation since the 2008 crash and thus depositors and all first level creditors are subject to confiscation if there is another crash. In short, the banks will be made whole again by a) taking all deposited funds and looting pensions, b) further backstopping from the tax payer and governments.

        They will re-boot again with YOUR money and force everyone on to a digital currency system. From that point on, they will use negative gearing to take a portion off your savings every month. They will also automatically apply penalties and other garnishing via your digital account if you do bad things, such as speed, not be nice to your wife, etc.

        You will be locked into a virtual digital box where all your ‘wealth’ will reside. They will then pick away at it at will whenever they need to top up the financial system. Look at China: they already have this system. It is coming here and more than likely it will be implemented by a Chinese company. Europe is nearly there already.

    • Anonymous says:

      The bank depositors are on the hook next time around.

    • durangokidd says:

      “….but while so many are still wanting to borrow money they have not yet earned, it makes it tough for creditors to reign it in.”

      I think the opposite is true.

      Lenders are pushing individuals to borrow with zero interest rate cards and it is difficult to say “NO” when interest on balances do not start to accrue for 18 months.

      I get hammered several times every month by the same half a dozen lenders trying to get me to take more credit. I suspect that it happens to all of those individuals with a high fico score and strong repayment history.

      Look at the incentives that banks are giving for deposits in new checking accounts: $300, $500 for a $10k deposit. Bankers are seeking new accounts to have more reserves to confiscate when the balloon goes up …. and your deposit with it.

      Leave only a month’s worth of cash in your accounts to pay your bills. I caught a story about the amount of cash in circulation: specifically the high number of $100 bills. It seems that Americans recognize that the dollar is KING and they are collecting Franklin’s (like me) and keeping them tuck away in their mattress.

      Twenties work well too !!! -)

    • TharSheBlows says:

      The Banks are a Tool of the FED. Screww The Banks, KARMA BABY!! Key Words: “Strategic Default” First move all your assets into a Trust, (OR)for about $30 get your Land Patent at the BLM in Washington DC, and file a certified copy at your County Recorders Office, then your land will always be your land no matter what, and nobody can place a lien on your land if you have a land patent, including not allowing any federal income tax default liens placed on Patented Land.
      Never put your assets into the same bank as your liabilities. The banks will take your assets like payroll and use it to pay your debts. So separate the 2 in total separate banking or credit union institutions.
      Change in your paper IOU Fiat Dollars into Silver 1 Oz Rounds and find a good place to bury it. Do Not put it in any bank vault or UN-safety deposit box.

      Guns Ammo, Gold, Silver, Land and survival preps and assets. Guard it with your life.

  2. Mike in VA says:

    It may be on here that I saw these statistics.

    Average American has $ 10,000.00 in credit card debt. That is unbelievable to me. Most Americans have 10,000 dollars in credit card debt.

    Also 3 out of 4 live paycheck to paycheck and don’t even have 1000 dollars in savings.

    All this is why I started prepping.

  3. Rock Roller says:

    Never had a credit card, despite offers to get them, and never will.If I cant afford it today, how can I afford it tomorrow? If there’s something expensive I really want, I just save the money till I can get it. Why go into debt and pay a third more for it?

  4. Mike; paying off debt is part of prepping. Another monkey off one;s back. Idea is to get rid of all the monkeys. No excuse for all that debt.If you don’t need it,don’t buy it. If you are paying for necessities,get another job til its gone. Short term can happen but people have let it get away from them.

    • durangokidd says:

      Pay your debt down, but leave your unsecured credit lines open. SHTF may happen quickly, but I think there may be an opportunity to use the unused balances for additional PREPS before the sun goes down on THAT DAY !!!

      Think about it. If you have an additional few thousand dollars available, you may have an opportunity to purchase additional forms of “insurance”.

      I have one card with $5k available just for that possibility. If I run down to CostCo, Wally World, & tap Amazon just before the SHTF for additional preps, is Chase Bank gonna come to my compound for my ammo & Mt House ??? I don’t thinks so 🙂

      • TharSheBlows says:

        YEP!!! Get ready. Pay off all your secured debt first like auto payments and your Mortgage, then pay off the unsecured Credit cards last. They can’t back take what you already spent on a CC.

  5. Credit cards are a scam. No one needs them. They are designed to tempt you. They are designed to trick you. They are designed to steal your money with your agreement, so that you participate in your own fleecing. Like sheep, a new sucker is born.

    .

  6. Montana Guy says:

    Mac is preaching to the choir here regarding debt. We get it but we are is a very small minority.

    Self-reliance has been cleverly bred out of Americans. Look no further than the way self-reliance is mocked. Honestly, can you imagine our Grandparents seeing the state of Americans today?

  7. Bert says:

    Look closer to discover who is at fault. The bottom 50% are narcissus unemployable obese parasites and are paid by you stupid working taxpayers to reproduce.

    And this isn’t going to get any better due to you obese liberals and guttless-yellow-bellied-libertarians hell bent on destroying the Republic and the free market.

  8. Bilge Pump McCoy says:

    You have to admire the banks. They know human nature and they have found the perfect way to exploit it. Just give people an easy way to buy the latest whiz-bang gadget and watch the impulse buying begin. For all the criticism banks get for “exploiting” people, I for one think they are brilliant.