Thanks for reading The Economy and Investing with Dr. Sohn! Subscribe for free to receive new posts and support my work. Consumers have increasingly turned to credit cards to make ends meet, leading to a notable rise in debt levels. Despite assumptions that delinquency rates have humped, the reality is somewhat different. Breaking down the figures, American consumer debt reached a staggering $16.84 trillion in the second quarter of 2023, climbing 4.5% from the previous year. This hike is largely driven by substantial increases in credit card debt, which soared by 16.3%, and personal loan debt, which rose by 21.3%. Auto loans also grew by 5.8% due to inflated car prices. Mortgages account for two-thirds of this consumer debt, while non-mortgage debt, including credit cards and home equity lines, make up just 4.8%. Looking at delinquencyrates, there's minimal movement in the housing market. Most homeowners areholding onto low-rate mortgages, unaffected by recent interest rate hikes.
The Real Story Behind Rising Credit Card Debt
The Real Story Behind Rising Credit Card Debt
The Real Story Behind Rising Credit Card Debt
Thanks for reading The Economy and Investing with Dr. Sohn! Subscribe for free to receive new posts and support my work. Consumers have increasingly turned to credit cards to make ends meet, leading to a notable rise in debt levels. Despite assumptions that delinquency rates have humped, the reality is somewhat different. Breaking down the figures, American consumer debt reached a staggering $16.84 trillion in the second quarter of 2023, climbing 4.5% from the previous year. This hike is largely driven by substantial increases in credit card debt, which soared by 16.3%, and personal loan debt, which rose by 21.3%. Auto loans also grew by 5.8% due to inflated car prices. Mortgages account for two-thirds of this consumer debt, while non-mortgage debt, including credit cards and home equity lines, make up just 4.8%. Looking at delinquencyrates, there's minimal movement in the housing market. Most homeowners areholding onto low-rate mortgages, unaffected by recent interest rate hikes.