According to Federal Reserve Bank of Philadelphia research, American credit card delinquency rates are at an all-time high, yet at the same time, a record number of “active accounts” have “a balance of over $2,000.”
Since Joe Biden has been president for more than three years, it is obvious who is to blame.
Additional information from Bloomberg
“As of the end of December, the Philadelphia Fed reported that about 3.5% of card balances were at least 30 days past due. In the data series dating back to 2012, the number is the highest and has increased by around 30 basis points from the previous quarter. Additionally, the percentage of loans that are 60 and 90 days past due increased.
According to the study, “the proportion of accounts making minimum payments jumped 34 basis points to a series high, further underscoring the stress among cardholders on payment behavior.”
The Philadelphia Fed estimates that 10% of credit card users currently have account balances greater than $5,200, according to Bloomberg. “A balance of more than $2,000 is present in 25% of active accounts for the first time.”
“Cardholders’ credit scores dropped to their lowest levels since the first quarter of 2020” in the 10th and 25th percentiles.
Additionally, the number of people making only minimal payments has increased.
Low credit ratings, minimal payments, large amounts, past-due records, etc. These are dreadful indicators of what is taking place in the real world. Firstly, credit cards are a sucker’s game – nothing more than legal loan sharking – until you pay them off each month. According to Forbes, there are credit cards with annual percentage rates (APRs) as high as 25% to 30%, while the “average credit card interest rate is 27.89%.”
Oh my god, that is almost two points a month on average. Therefore, if you charge $1,000, you are throwing money down the toilet in interest—that is, $20+ a month.
Only the truly desperate can receive such treatment. And we are in the Land of Bidenomics, where becoming a corporate loan shark is the only way to make ends meet when a dozen eggs and a gallon of gasoline cost around $4.00 apiece.
People first default on their credit cards before falling behind on their mortgage, rent, and auto payments. Since the pace of inflation is rising, these interest rates are not going to drop anytime soon. With the recent spike in gas prices to a national average of $3.63, the cost of goods and services that use energy will likewise rise—and almost all goods and services use energy.
I can only advise people in need to take a plane to Mexico and then enter Biden’s America covertly. After that, you will get thousands of dollars’ worth of pre-paid credit cards, free housing, and free healthcare. It is impossible to succeed by obeying the rules when Democrats are in power.
