The Blubber | April 25, 2023
Per CNBC
Over a third of Americans reportedly had more credit card debt than savings. To be specific, 36% of them reportedly had less money saved than their debts, per a new report.
The data comes from the New York Fed’s Quarterly Report on Household Debt and Credit report, which saw a 15% increase over the past year, with a 7% increase from the previous quarter alone.
Bankrate noted that the numbers show a record 12-year high as the same study in 2022 found the percentage at just 22%, with the 2021 percentage at just 27%. It was reported that from December 2021 to December 2022, the New York Fed saw a $130 billion increase in balances.
I cannot imagine carrying a $7-8K credit card balance. That being said, many defaults on the horizon as people will walk away from unsecured debt.