Ensuring the Debt Trend Continues

 

The O’Biden Boyz have made it clear that American households are NOT Washington’s priority, ensuring the debt trend continues in America.

 

The New York Federal Reserve reported that American households set a new record in debt in Q1 of 2024 plummeting into $17.69 trillion of debt.

 

Look at this number again…$17,690,000,000,000.

 

And in no particular order, the breakdown is as follows:

 

• Mortgage debt: $12,440,000,000,000…up over $190 Billion as of March 2024.
• Auto loan debt: $1,620,000,000,000…up over $9 Billion.
• Overall credit card debt declining by $14 billion to $1,120,000,000,000 trillion.

 

 

To fully appreciate the severity of this debt trend, let us break it down further starting with Credit Card Debt.

Consumers do not want to pay those 20%+ interest rates on cards.

However, many are forced to do so simply to put food on the table.

So, 20% interest on $1.12 Trillion equals $224 BILLION annually.

 

If mortgage interest averages 5%, the interest would be approximately $622 Billion annually.

So, based on those two debt monsters, it’s pretty obvious that people are paying far more in interest alone than they have in recent years.

 

Adding gasoline to this inferno:

 

• The number of delinquencies is rising as households struggle to make ends meet amid the cost-of-living crisis.
• Inflation is not waning.
• Taxes are rising.
• And America’s debt burden has become utterly unmanageable.

 

 

Why the Debt Trend Continues

 

Delinquencies are rising – this is a major issue.

 

“In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups,” said Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed.

 

 

The Fed also reported… Credit card delinquencies have reached their highest levels since 2012 when America was recovering from the Great Recession.

In fact, by the end of Q1 2024, around 3.2% of all outstanding debt was in delinquency.

 

Granted, 3.2% doesn’t sound like a big number.

But (in reality) it amounts to over $566 Billion.

 

In the meantime, the Neocons running the White House expect us to continue working and paying taxes to fund foreign wars and climate change packages.

 

Because, in their eyes:

 

• How else will we house those 8+ million illegal migrants and offer them free healthcare and shelter?
• And how else will we pay off the student loans for hundreds of millions?
• More importantly, how else will we continue to grow the public sector and pay for countless new social programs?

 

Sorry/not sorry for the sarcasm.

 

Keep in mind, this does not even begin to factor in the $35+ Trillion of our national debt.

 

So, still don’t think we’re headed for a Sovereign Debt Crisis?

 

Think again.

 

And learn how to prepare for the next manufactured crisis by reading Why Covid Was a Dress Rehearsal…

 And What You Should Be Doing in Preparation for the Next Fake Pandemic (HERE).

 

Share this with a friend…especially if they’re working several jobs just to make ends meet.

 

They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

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