Consumers still racking up credit card debt at levels not seen since 2008 and the financial crisis
By now many people have read the stories or seen the surveys that show that the majority of Americans are either living paycheck to paycheck, or don’t have enough savings to pay for an emergency expense of more than $400. ¬†Which means that as price inflation continues to soar in the general economy, there are only two ways consumers can keep up with their buying of necessary items.
- ¬†They skip out on one or more obligations such as healthcare
- ¬†The accrue debt by charging monthly expenses to their credit cards
For most Americans both answers are correct. ¬†However with interest rates still at near record lows, consumers are still willing to bust out their credit cards just to keep themselves afloat.
With credit card data in for Q2 2017, American households look to once again be on a collision course with the ever-elusive $1 trillion goal that narrowly escaped their clutches in 2008.¬† With nearly $940 billion in credit card debt outstanding, 2Q 2017 marked the second highest consumer revolving debt balance since the previous peak in 2008. ¬†–¬†Zerohedge
Central bankers and politicians who have thrived off a debt based economy for more than 50 years never realize that there are always consequences for these actions, where the effects of their decisions never reach their own pocketbooks. ¬†And this is because the banks can borrow infinite amounts of money at low interest, and the government can raise taxes anytime they see fit with very few political repercussions.
But in the end for the common person who has little power of price inflation and rising costs, the only outlets available are to either go without, or to continue to bury themselves in ever increasing amounts of debt.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.