From the title, you are probably assuming that something not-good is on the horizon, and you would be correct. According to the latest data Americans are becoming more and more in debt, and this cannot be a good thing.
The steady rise in household debt reflects ongoing economic pressures, including high interest rates and elevated living costs.
Meanwhile, inflation data released earlier this week showed that U.S. consumer prices rose at their fastest annual pace since June 2024.
From the Epoch Times:
Americans piled up debt at the end of 2024, with credit card balances reaching a record $1.21 trillion in December, according to the Federal Reserve Bank of New York’s latest report on household debt and credit.
Debt levels increased across several categories, with auto loan balances climbing by $11 billion to $1.66 trillion, while total household debt grew by $93 billion to reach $18.04 trillion, according to the report.
The report highlights an uptick in delinquency transition rates for auto loans and credit cards, signaling that more Americans are struggling to keep up with payments.
The share of credit card debt transitioning into serious delinquency—defined as 90 or more days past due—rose from 6.36 percent in the fourth quarter of 2023 to 7.18 percent at the end of 2024. Auto loan serious delinquencies also increased, rising from 2.66 percent to 2.96 percent over the same period, the New York Fed said.
So to me, this combination of economic data portends a potential train wreck. When is it coming? … Hard to say, but, for sure, when it comes the Main Stream Media will blame it on Trump, even though common sense would dictate that years of Bidenomics is what has fueled the train!
3/4/25