90 day credit card delinquency rate reaches 14%
- Thread starter PabloNole
- Start date
Possibly they were before the Trump inflation wrecked the economy. Maybe Trump shouldn't have started a war of choice. Maybe he SHOULD consider the economic welfare of Americans when he's "negotiating" with Iran.
Go ahead and ignore this. BAU for you.
Give the dip credit. He is trying to be drump like..
I would love to have him come back to explain how Q4 from 2004 is related to Q1 in 2026? Make it make sense.
Or another lecture that buying groceries is financially irresponsible.
Apparently making tacos at home is only for the well off in this Trump economy.
C’mon Ned. You really think a majority of people in CC default are buying Luis V chit?
There was a time in my life and yours, when limits on usury stopped CC interest rates well below 20cent.
Why is a rate of 25 plus legal today?
not sure if this is apples to apples but in 2022...seems as if this might not be the first time
When looking specifically at the dollar value of revolving balances, serious credit card delinquencies (accounts 90 or more days past due) averaged in the \(11\%\) to \(12\%\) range throughout the year, according to the New York Fed Consumer Credit Panel. [1, 2, 3, 4]
Key Delinquency Trends in 2022:
- The Turnaround Point: The end of 2022 marked the trough of pandemic-era payment behavior. Following Q4 2022, 90-day delinquencies began steadily climbing as fiscal support programs expired and lenders took on higher risk.
- Income Disparities: The economic tightening disproportionately affected borrowers in lower-income brackets. In the lowest-income 10% of U.S. ZIP codes, the 90-day delinquency rate hit a bottom in Q3 2022 before starting a significant upward trajectory.
- Vintage Risk: Delinquency rates for credit cards opened in 2021 and 2022 accelerated much more rapidly than cards opened in previous years, reaching severe delinquency thresholds in less than two years. [1, 2, 3, 4]
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It is apples to elephants. 2022 the world was coming out of Covid and Russia invaded Ukraine. In spite of all of that, the inflation rate in the US was lower than the vast majority of industrialized nations.
This is on Trump. Pure and simple. I know you like to assign some blame to Iran but none of their actions would have happened if Trump didn't start a war with them against the advise of his own intelligence agencies and most in his cabinet. Trump inflation falls only on his narrow shoulders.
because that is the rate that the markets sets? No one is forcing you to use a credit card.
The UOM is %. That's all you need to know.
Christ are you guys pathetic. Stupid too. I feel badly about how stupid you are. Another public sector failure.
https://tradingeconomics.com/united-states/credit-card-accounts
And, you are good with that Fooging nasty number?
No comment on the former anti usury number of less % ?
That should be a criminally high number.
Percentage.... lmfao.....
Either you are the worst troll or the dumbest. Take your pick.
I am saying the market is setting the rate and it costs that much to borrow money for a reason (because they are unlikely to get paid back). If you attempt to distort the market rate via subsidies you will just cause other problems that usually end up being worse. The problem just shifts instead of being solved.
The better solution would be to figure out why rates are that high and then work to fix those problems.
So yes, I am absolutely OK with those rates. We are all adults. If you don't want to pay the rate, don't use the card. Do you need the government to hold your hand?
Naw, I don’t.
You seem to be ok with interest rates that just a few years ago were userus and therefore illegal.
Go big bank. Don’t pretend to give a foog about locals.
I do care about the locals. It's in their best interest not to use the credit card. The rates should be high, because they are spending money they don't have.
You can pretend to be compassionate by essentially lying to them, but i don't view that as compassionate at all.
Of course it is best only to use a CC when you can pay it off monthly. Duh.
Why is it ok for the CC interest rate to be three times the mortgage rate?
Usury. Illegal just a few years ago.
Because people will pay back their mortgage because it's the roof over their head. Same reason that real estate fairs very well during inflation, the roof over your head is the last thing to go. Mortgages are also backed by real property unlike credit cards.
So yes, credit card rates should be much higher than mortgage rates. This is the correct method. If you distort it you will just shift the problem somewhere else.
because i dont care about it. If the market sets rates at 100%, that is fine by me. Just don't use the credit card.
Gas station on the corner charges too much? Just go to another gas station.
Competition, not regulation.
So you know "the good clubs" who don't want women.
LMFAO.... Oh Bill, get out of your own way.
Hard to do with runaway Trumpflation, and a US economy supported by consumer spending.
Really? I’m on the Tiger Illustrated group plan for his mom. You save a lot of money when you bundle users.
not trying to deflect or assign blame to anybody. Just trying to point out that things like high credit card defaults are not limited to ons regime. I totally agree that today's inflation is in no small part caused by both Iran and by tariffs.....inflation in 2022 had it's own set of causes. But the credit card delinquencies are cause bu similar things, people spending money they don't have any allowing the usurious interest rates to get ahead of them
maybe not a good example using Luis, but my point was that just a figure like 3% delinquent doesn't tell the whole story.
Why is 25% legal. Heck, I don't know...I'd guess that as long as two parties, the card and the consumer, agree on a rate (when the applicant signs the form) it becomes a valid contract.
The irony of our economic life is that if you're rich and pay back your bills on time you get a lower rate - card companies are pretty sure you'll pay it back: if you're poor and maybe need the card more, you'll pay a higher rate because of payback uncertainty.
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Trumpflation hasn’t reached 1/2 of what Bidenflation got to.
Consumer spending? What do you think an economy is?
So it's just like I said, you want people to go into high interest debt by spending money they don't have.
I didn't mention Starbucks and avocado toast. I also didn't say anything about affordability. I said it's not smart for people to keep digging their hole deeper.
I fully understand that it's difficult for many young people to buy a house and raise a family but going deep into high interest debt isn't the solution. Seriously, what's wrong with you people?