May 2021 Original; “Based on the average interest rate charged on credit card balances of 15.9%, that pay-down of $157 billion in credit card balances that consumers somehow engineered represents $25 billion a year in lost interest income for the banks!
That’s why banks are trying so hard to get consumers to borrow on their credit cards again. And that’s why the New York Fed, which is owned by the financial institutions in its district, finds that pay-down so “confounding.” We’re talking about $25 billion a year in banking income here.
The interest rate can be over 30% for consumers that cannot pay off their credit cards. If they had enough cash to pay off their credit cards at this rate, they would. But they’re stuck. Consumers that pay off their credit cards every month are often offered lower interest rates, but they don’t need to borrow on their credit cards. Banks also offer teaser rates of 0%, and then after a set period – after the consumer charged up the credit card and can no longer pay it off and is thereby stuck – the teaser rate switches to 29.9%.
Call it the credit card hustle.THE CREDIT CARD HUSTLE BY THE BANKS & THE FED HITS ROUGH SPOT | WOLF STREET
IS THERE A HUSTLE HAPPENING AT THE FED?
M1 money supply https://fred.stlouisfed.org/series/M1SL
HOW MUCH CREDIT CARD DEBT IS TOO MUCH, AT 20 TO 30 PERCENT INTEREST RATE?
Average interest rate charged on credit card balances in 2021 was 15.9%
Average credit card interest rates in 2024 20 to 25 percent https://www.lendingtree.com/credit-cards/study/average-credit-card-interest-rate-in-america/
Is more credit card debt showing that people overall are living in luxury and can afford all of this debt because they have such huge incomes?
Or is rising credit card debt an indication that people getting extremely desperate and living on their credit cards, because the next step is getting tossed out on the street, and homelessness?
Credit card balances have been rising steadily over the years, thus increasing bank income, so they are very happy, along with the billionaire owners that want everyone desperate, and willing to take any scraps thrown their way via part time jobs at minimum wage, with no benefits.
Report: Q1 2024
Blog: Delinquency Is Increasingly in the Cards for Maxed-Out Borrowers
Press Release: Household Debt Balances Rise by 184 Billion in Q1 2024; Delinquency Transition Rates Increased Across All Debt Types
https://www.newyorkfed.org/microeconomics/hhdc
WATCH OUT FOR OTHER TYPES OF CREDIT CARD SCAMS
Trump Organization fined $1.6 million for tax fraud https://apnews.com/article/politics-legal-proceedings-new-york-city-donald-trump-manhattan-e2f1d01525dafb64be8738c8b4f32085
Trump is charging $100 for a useless, pretend credit card made of metal. Can you imagine what Fox News would say if the Biden campaign was selling fake metal cards for $100? pic.twitter.com/q9vbSztAsB— James (@JamesSNYC) May 22, 2024
It’s a great credit card. You make a donation to Donald and then it triples that donation every month (or week) until you catch on and cancel it.— Patricia Sierra /Just another political junkie (@RealPSierra) May 22, 2024
Column: Trump’s tax cut was a mammoth fraud
Decades from now, many Americans will have to consult history books to gain an appreciation of the lowest point of Donald Trump’s presidency: his impeachment. But they will be able to feel the effects of his highest point: the 2017 tax bill, which he signed into law two years ago Sunday. That’s because they will … Continue readingColumn: Trump’s tax cut was a mammoth fraud
Der Friedensstifter 