Congratulations Debt Slaves! You Owe the Banks a New Record Amount of Money

-edited

Consumer credit hit another all-time high today of nearly $4.1 trillion.

Congratulations Debt Slaves!

Today's G19 Fed report on Consumer Credit shows that you owe the banks and other creditors yet another record high amount of money.

Consumer Credit

  • Total: $4.1 Trillion
  • Revolving: $1.1 Trillion
  • Non-Revolving: $3.0 Trillion

Well Done.

Mike "Mish" Shedlock

Comments (47)
No. 1-19
xil
xil

cue the fireworks

lol
lol

Inflation/shrinkflation hittin hard,prices are rising...……..ALMOST DAILY!Govt is constantly (almost daily)tryin to nickel amd dime you with fee increases,toll increases,sneaky tax increases as prices /costs soar,ffood,insurance,cable omg!!!

Tengen
Tengen

Best economy ever! You know, if I were allowed to run a country with $1.2T annual deficits and fostered massive credit card debt for individual consumers, I bet I could build a nice looking Potemkin village too.

If the Fed slashes to zero or below in the next few years, we'll really be off and running!

Sechel
Sechel

we live in a debt society. i feel like a throw-back. no mortgage, loan outstanding or credit card debt, paid it all off. anyone remember dave ramsey? a paid off mortgage is the new bmw? oh and i own, i don't lesae. i eschew leases

Six000mileyear
Six000mileyear

The major change over time is how revolving credit went from 5.6% to 26.8% of the total consumer credit. This is bad for the economy since it has the highest interest rate, which means more of a household's budget will go toward interest repayment and less toward purchases.

2banana
2banana

Warren and all the democrats want to forgive all student debt...

Why not credit card debt?

Why not auto loan debt?

Why not mortgage debt?

How do you think this will end...?

TCW
TCW

Has anyone else noticed just how many self storage units are being built? They're popping up everywhere around me. Has to be a sign of a consumer bubble...

shamrock
shamrock

GDP 1971 = $1.1T, GDP 2018 $20.5T. Ratios of 12% versus 20%. Keep in mind also that GDP is inflation adjusted, unclear whether or not these debt figures are.

thimk
thimk

equally important is : who owns this debt ?

conscript
conscript

Commenter 'Sechel' has it right. In my era, you didn't touch a house unless you had 20% down; no exceptions unless you had a VA loan. Cars would be typically paid off in eighteen months to two years. Second had appliances were common.

Ah yes, a bygone era of responsibility and common sense. Then again, we didn't send jobs out of the country. We didn't export manufacturing, we didn't import foreign nurses, engineers, etc to drive down labor and wages. No bank would lend out mortgage money with a three percent down payment. Remember the concept of skin in the game?

Maybe we should start exporting bankers, hedge fund managers, entire stock exchanges, etc. Oh wait; I forgot, I live in eastern Massachusetts surrounded by The Coastal Elites who never gave a dam about others and would willingly sell out anyone or any function to have "cheap stuff" and a nice lifestyle.

We need an adiabatic economy. True, it is a very old fashion idea, but it is something to re-evaluate.

KidHorn
KidHorn

This isn't news. A newsworthy event would be if debt didn't go up YOY.

Ted R
Ted R

Default central is coming up. This time around the government should bail NOBODY out.

Casual_Observer
Casual_Observer

Lower interest rates coming to a bank near you in < 6 months.

William Janes
William Janes

My grandfather, a small farmer, who farmed with his brothers, refused to take on debt for a new better farm in the 1930s. The brothers were good farmers and they had the cash flow to pay the debt on the new farm. No, my grandfather and his brothers, kept farming the same poor farmland till they retired just as poor as when they started. Told to me by my aunt, who did not follow their example, and is well off. I know this article is about consumer debt which I agree should not be overused, but debt is essential to improve your circumstances in life.

MorrisWR
MorrisWR

Luckily I have zero debt...sorry to all who are in hock to the blood-suckers.

MickLinux
MickLinux

The problem with NOT being a debt slave, in my experience, is that the government in printing and giving freebees to so many for so much, means you still can't buy the necessities of life; and the rental companies (which may well be run by debt slaves/debt corps) jack up their prices to fund their debt ... ... so, whaddya know, even if you AREN'T a debt slave, you're still a debt slave.

everything
everything

It can go up pretty fast, my gfriend just bought a million dollar condo, mostly financed. Everyone I know moving right now typically sells about 200-300, then buys in the 300-800 range, always upgrading, always spending. I got lucky, and bought cheap, even the realtors lost interest in trying to get me to sell & trade up, although now over the course of 5 years, I wish I would have.

Casual_Observer
Casual_Observer

In 2018, Americans paid a collective $113 billion in credit card interest, according to MagnifyMoney – a 49% jump from five years ago. Millions of U.S. households also face mortgage, auto and student loans debt. Total U.S. household debt rose to $13.67 trillion in the first quarter of 2019, according to the Fed.

“It’s pretty clear that there are a lot of people that are living close to the edge and if that’s happening in good times, it is worrisome if the good times don’t last,” Rossman says. “So that would be the advice all the more, is pay [your credit card debt] down now, get the side hustle, cut your expenses.”

Mish
Mish

Editor

Anyone not paying off credit card bills every month has issues.