The surge in credit card delinquencies might be a 'harbinger' of a coming recession, Wells Fargo says

Late payments on credit card balances are surging, potentially signaling a recession, as delinquencies hit an all-time high among commercial banks outside of the top 100, according to Wells Fargo.

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8/23/2023

Macy's sounds the alarm on credit card delinquencies

Macy's warns of a surge in delinquencies on credit card payments, signaling mounting financial stress on consumers.

8/24/2023

US department stores see higher credit delinquencies amid strained spending

Major U.S. department stores like Macy's and Nordstrom are experiencing delays in store credit card repayments, which pose a risk to revenues as consumers reduce discretionary spending ahead of the crucial holiday shopping season.

8/25/2023

Household debt is at an all-time high, but 2008 was still worse, report finds

Despite reaching record levels of total credit card debt and household debt, Americans are actually managing their debt better than in the past due to inflation masking the impact on balances and lower debt-to-deposit levels, according to an analysis by WalletHub. However, the rising trajectory of credit card debt and the increasing number of households carrying balances raise concerns, especially considering the high interest rates, which can take more than 17 years to pay off and cost thousands of dollars in interest. Meanwhile, savers have the opportunity to earn higher returns on cash due to higher inflation and interest rates.

9/4/2023

Credit card and car loan defaults hit 10-year high as inflation...

Americans are struggling to pay their bills as inflation rises, leading to a surge in credit card and auto loan defaults, which is expected to worsen with rising interest rates and the expiration of the student loan moratorium. Low- and middle-income earners are particularly affected, resorting to using credit cards for essential purchases, while opening new lines of credit to pay off debts, resulting in record-high credit card debt. The resumption of student loan payments and potential holiday season spending add to concerns about escalating debt levels.

9/8/2023

U.S. Consumer Credit Growth Slows in July as Credit Card Use Rebounds

Consumer credit growth slows in July, with overall credit rising $10.4 billion, below expectations, as revolving credit rebounds while nonrevolving credit growth remains modest, indicating potential exhaustion of excess savings from the pandemic.

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Posted 8/22/2023, 4:19:00 PM