Credit Card Markets:
Back in Business –
Consumers Debt Soars.
According to Cassandra Cassidy a writer for the Economy portion of Morning Brew, booming credit card debt is the result of higher prices caused by inflation, rising interest rates, and strong consumer confidence, as well as 24 million new credit cards issued in the last quarter. 
She noted that a new Federal Reserve Bank of New York Report shows that credit card debt is over $1,000,000,000,000! (that is a trillion if you don’t want to count all of the zeros)
Not only has debt risen, late payments have also gone up. In the second quarter:
- 7.2% of credit card accounts were 30 days overdue (highest in 11 years)
- Delinquency rates rose 3.18% (up from 3%)
My favorite part of her piece came from New York Fed researchers that said, “There is little evidence of widespread financial distress for consumers.”
This is perhaps backed by the facts that:
- Delinquency rates are returning to pre-pandemic levels
- Consumer debt is just 6% of total deposits Americans have in their bank accounts
But it certainly does not match what I hear from the people I speak with:
- Dealing with higher prices
- Paying higher interest on purchases
- Taking out new credit cards (24 million new credit cards issued in the last quarter)
How do you feel about the fact credit card debt has reached $1 trillion? Is it time to panic? Have you noticed widespread financial distress for consumers?
The good news is if you are personally facing financial distress, options may be available.