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US Revolving Credit Rises 23rd Month As Rates Hit 20%
Americans' revolving credit balances rose the least in nearly two years in February, data released on Friday afternoon showed.
The $5 billion increase from January counted as the smallest month-to-month rise since April of 2021, when inflation took off in earnest. January's increase was revised markedly higher. The data isn't adjusted for prices.
A simplistic read would be to suggest the reported deceleration in February is evidence of lower goods prices, consumer exhaustion, reluctance to tak
The sticker shock from 20% credit card interest rates is likely a major factor. Some 75% of the US population has never seen such a thing before.
Updating Talleyrand: “Never underestimate the power of human stupidity.”
I remember the late 1960s CC interest rates through the 1980’s, man! what a ride.
that’s my foundational and ongoing thesis of the majority of American (worldwide…?) voters…
My wife and I got our first credit card in 1968. It was a BankAmericard (now called Visa). It was owned and franchised by the Bank of America. It just showed up in our mailbox one day for no reason I could tell. The rate was 1.5%/month — 18%. I have always assumed rates on cards stayed at that rate. What I have never noticed before is anything but 18%. I always pay off my balance so no cost to me.
One of the things you don’t factor into your analysis is the amount of people like myself who do balance transfers for 0% for 6-15 months for 0-3% transaction fees.
“While it’s true that some borrowers (i.e., the smart ones with the financial wherewithal to conservatively manage their affairs) pay off their cards regularly…”
Actually you are very conservative. Thou I have never had a monthly balance on these cards I have a couple that are 29%.