This is not surprising at all. Jobs are not plentiful. Housing is high. The cost of living is way out of proportion to average incomes (why are value meals $8, sandwiches $8, cups of coffee $3-6 and avocados$3???).. Now United States households are more than $1 trillion in credit-card debt.
Americans had $1.021 trillion in outstanding revolving credit in June 2017. “This record should serve as a wake-up call to Americans to focus on their credit card debt,” said Matt Schulz, a senior industry analyst at CreditCards.com, a credit card website. “Even if you feel your debt is manageable right now, know that you could be one unexpected emergency away from real trouble.”
One reason: More consumers are getting access to credit cards backed by major banks and issuers in recent months. More than 171 million consumers had access to those cards in the first quarter of 2017, the highest number that has had access since 2005, when about $162.5 million people had access.
For the first time since the Great Recession, lenders have given more consumers with sub-prime, or below average, credit scores, access to credit cards. This year, total household debt — including housing, auto loans and student-loan debt — in the U.S. also surpassed the 2008 peak. Compared with 2008, fewer borrowers have housing-related debt and, instead, more have taken on auto and student loans.
Getting some deja vu here…..
Didn’t this happen in the lead up to the last big recession here during Bush’s 2nd term? I remember them saying Americans held a record amount of debt at that time and then a couple of years later that recession hit and banks had to be bailed out. I could have sworn that happened.
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