The only reason that the economy hasn’t totally crashed is that Americans are living on credit. Credit cards are what is keeping America afloat whether it’s getting cash withdrawals, paying other bills, buying gas and groceries, medical bills, vet bills or other necessities.
According to a Federal Reserve Bank of New York report on household debt, Americans now owe $1.08 trillion on their credit cards. CNBC reports that credit card balances spiked by $154 billion year over year, “notching the largest increase since 1999.”
As inflation continues under Biden and Democrat policies, Americans are struggling to pay for food, gas, housing and other needs and are carrying credit card debt from month to month to get by. They are also falling behind on those payments according to a separate report from the Consumer Financial Protection Bureau. CNBC also says that credit card delinquency rates also rose across the board, according to the New York Fed, but especially among millennials (borrowers between the ages of 30 and 39).
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Helping consumers to fall behind in their credit card payments are the high interest rates that they are paying. Since most cards have a variable rate, there’s a big connection between the rates and the Federal Reserve’s 11 interest rate hikes that have happened during the Biden presidency.
The annual percentage rate on credit cards is now more than 20% which is also at an all-time high.
Gone are the low Trump prices and the stimulus money that gave Americans a little padding in their spending and bank accounts.
Now, Americans are stuck with Democrat policies and Democrat prices – and credit cards are the only thing that are keeping many people above water in the big ocean of Bidenomics.