If the economy is
doing so well
Why are Americans going deeper and deeper into debt?
December 21, 2017
Americans are up to their eyeballs in credit card debt. CLICK TO ENLARGE
(NATIONAL) -- President Trump never seems to miss a photo op moment to tell the American people how great the economy is doing and how he is responsible for that greatness.
But if the nation's economy is doing so well under President Trump, then why are Americans going deeper and deeper into debt?
"Credit card debt statistics speak to the financial health of American households," says a report this month by WalletHub. "They can also foreshadow over-borrowing bubbles, changes to lending standards, and other trends with the potential to impact our wallets."
Here's what that report speaks to:
"Following the worst year for credit card debt since the Great Recession, we started 2017 with a $30.5 billion first-quarter paydown. But we borrowed it back and then some during Q2, racking up $33 billion in new debt and another $22.2 billion in Q3." (Emphasis ours).
"So it’s not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get."
WalletHub projects that Americans will end 2017 with more than $50 billion in new credit card debt. That would mean we’d owe over $1 trillion in credit card debt overall.
Is that a signal of an economy that's doing great? During Donald Trump's first year in office, "The $22.2 billion in credit card debt that we added in Q3 2017 is 46% higher than the post-Great Recession average. It also the highest Q3 accumulation since 2007."
More details here .
STORY TAGS: US economy, credit card debt, Great Recession, WalletHub