Six months ago, it was reported by the NY Federal Reserve that credit card debt was a crisis, in the trillions. Just the other day, it was reported again with an increase of the numbers by about 2%.
Sure enough, everyone concerned about debt peonage and the enriching of the wealthy know by now that this is a crisis and something has to be done. But in the last six months, nothing.
No legislation, speeches or promises by politicians, no changes in credit card company policies toward debt forgiveness, or any other headlines warning that this will soon break the livelihoods of working families.
The reason nothing is getting done is reported in the article itself. It is because this crisis is not affecting the wealthy as much as it is working and low-income families.
According to the latest stats, “U.S. households are carrying a record amount of credit card debt, according to a new Federal Reserve Bank of New York report. Credit card delinquencies have also soared more than 50% in the past year, with the Fed’s report finding that about 6.4% of all accounts are now 90 days past due, up from 4% at the end of 2022.
Most analyses of Americans’ financial health tend to tell a tale of two consumers. On one side are the roughly two-thirds of Americans who own their homes and those who’ve invested in the stock market and done substantially well. They generally had the savings cushion necessary to weather high inflation.
But for the rest of America, things are looking rough.
“You have these noticeable pockets of consumers — mostly middle- and lower-income renters who have not benefited from the wealth effect of higher housing prices and stock prices — who are feeling financial stress and that’s driving up these delinquency levels. They’ve been hit very hard by inflation,” said Warren Kornfeld, a senior vice president at Moody’s.”
Of course, the problem will not be addressed because middle and low-income workers apparently do not count when it comes to the need to survive. America is one of, if not the most, self-centered, greedy countries on earth.
“Other types debt, including auto loan balances, grew too, hitting $1.61 trillion. Mortgage balances increased by $112 billion to reach $12.25 trillion. Debt holders are also carrying their debt for longer periods of time, as it compounds, and they struggle to pay it off.”
Debt peonage is just one of the crises this country faces and no solutions are applied. There is gun violence, drug use and overdoses, hate crimes, race discrimination, immigration problems, and too many other problems to mention. The fact is, nothing is getting done.
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