Consumer Credit Card Debt is the next shoe to drop

Real US debt levels could be 2,000% of economy, a Wall Street report suggested recently . But analysts who study consumer spending habits say there’s a real debt risk much closer to home: The amount and pace at which American consumers are racking up credit card debt. Retail sales gains seems to be largely predicated on the back of an average Joe who is forced to use his high-cost credit card to cover everyday expenses. That's a sign of the Trump greatest economy ever. Credit past the eyeballs. I knew when they came out with their report just recently, that consumers were "on fire", that it was all credit fueled . Yea, the consumers are on fire, like a Tesla car going up on flames. welcome to The Atlantis Report , in this video we will see why Consumer Credit Card Debt is exploding Despite Rates At 18-Year Highs . The current situation of the American's finances is not too encouraging, We started the year owing more than $1 trillion in credit card debt, and although we paid off a large chunk in the first quarter, that could be a sign that more debt will be taken on by consumers. Despite The Fed signaling rate-cuts as far as the eye can see, US credit-card interest rates have soared to the highest since 2001. And despite credit card rates being at 18-year highs, US revolving debt ,largely made up of credit card debt has exploded in July to its highest on record. According to the Federal Reserve’s consumer credit tracker, revolving credit — a category in which credit card debt predominates — increased at an annualized rate of 11.25 percent in July, the most recent month for which data is available. Credit card debt is a sign that more people are needing to rely on credit cards to get by or make ends meet. This is a sign that things are getting a little bit tougher for folks. According to Fed data, borrowers hit the trillion-dollar mark in outstanding revolving credit back in September 2017 for the first time since January 2009. The total amount of revolving credit peaked in May 2008 at roughly $1.02 trillion. Net consumer credit card debt is estimated to increase by $70 billion this year. Currently delinquencies and defaults are still at low levels overall, but for how long this will be sustainable is an open question, particularly for subprime borrowers. It’s always concerning when you see so much of an increase in high interest rate debt, and revolving credit card debt right now is something that would fit that category . Both revolving and non-revolving debt have been growing at a faster pace than household income for years, We haven’t seen signs of stress because unemployment is really low and so are interest rates, but as soon as either one of those or both increase in any measurable way, that’s when the cracks will start to appear. All this debt is not a problem until it is. In recent months, uncertainty over the President Donald Trump’s trade policies has prompted a sharp pullback in corporate investment, leaving consumer spending as the last big driver of economic growth. While a higher level of consumer borrowing is something that’s fueled economic growth, there are limits to that. Despite the Federal Reserve cutting rates in July for the first time in more than a decade, the price Americans pay to service their debt has been creeping up — and future rate cuts are no guarantee that borrowers will see any measurable relief. A quarter-percentage-point rate cut would save borrowers about $1.5 billion by the end of the year. In reality, these savings wouldn’t likely stretch as far as borrowers might hope. It is estimated that even with a half-percentage-point rate cut from the Fed, borrowers with $6,000 in credit card debt and making $250 monthly payments would save only between $63 and $72 off their total debts, depending on their credit scores. Higher interest rates offered by lenders are a primary culprit. WalletHub says average credit card APRs for people with good credit and business credit cardholders — at 20.9 percent and 18.5 percent, respectively — are the highest they’ve been since it began tracking rates in 2010. For people with less than stellar credit, even those rates might be out of reach. For example, a new applicant with a credit score in the low 600s might be offered an APR of about 22 percent. That’s a pretty high interest rate, and when people carry that debt from month to month, that cost is a burden, and it can sometimes be the tipping point for people who are living close to the edge financially. This is a direct consequence of a fake economy based simply on Consumption and Zero industrial production. Our Elites allowed the world to punish us by using credit, to buy their products at a very high price compare to the unit per cost of production due to cheap labor in Emerging countries . This Model by all means is not working for Americans . Get ready for the greatest recession in the history .









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