https://m.stacker.news/18931
Credit card debt carries a hefty bill in America, and falling behind on payments can be extremely costly for cardholders.
This graphic shows credit card delinquency rates across 50 U.S. states, as of Q3 2023. This data comes from a WalletHub study published in January 2024.
Credit card delinquency is when a cardholder falls behind on required monthly payments. Credit agencies are often notified after two months of delinquent payments.
WalletHub examined proprietary user data on the average number of delinquent credit card tradelines—also known as credit accounts—across states.
🔗 visualcapitalist.com
A money machine for banks. Remember when credit cards are used it’s the bank creating new money and then charging you interest.
Visa and MasterCard just take their fee.
Are you sure that new money is created when someone uses a credit card? I must be missing something, can you explain it better?
Yeah all banks in USA have very little reserve requirement. And we have debt based money. Soon as you use that credit card it instantly becomes an asset to the bank because it’s dollars you owe them. It becomes your liability because you must pay it back.
The interest rates on credit cards are so high because they have a higher chance of default. To make sure the bank doesn’t lose on these short term loans they make the rates extremely high.
Since Americans love to consume and we get ads in our faces everywhere we go people who have poor impulse control get suckered in.
thanks ! I assumed the reserve requirement was zero, but maybe it's different for credit.
Is it a huge money maker? I would have guessed so but it seems like a lot of these delinquencies end up settling for pennies on the dollar, so I'm curious how the profit margins works out in the end.
this seems really high - so basically 1 in 5 Americans is at least two months behind on credit card payments?
I didn't do the average, but I assume you did and it came out to 20%. If that's the case, I would say that 1 in 5 Americans who use credit cards "default". You point out an interesting fact, and it also seems high to me, but what caught my attention was that there is more "default" in the south. Do you have any idea why that might be?
right. i didn’t do a full calculation, just estimating with rough numbers to get the 20% figure.
i think lower incomes in the south is probably a contributing role, harder to pull yourself out of debt once you get behind.
These are legitimate and pertinent questions. When I tried to search for information about the data, I got this message, which is not true. I only tried to access it once. Could it be the stackers? Try accessing the site to see if it works for you.
https://m.stacker.news/18960 https://wallethub.com/edu/states-where-credit-card-delinquency-is-increasing-most/131750
Maybe your VPN.
I'm not connected to a VPN. Did it work for you?
I was able to connect.
Not sure what's the problem. I'll try using a different network.
https://m.stacker.news/18981
Showing delinquency by income tax brackets
Also by race ethnicity religion
Those are terrible metrics.
Like black is not a race but the jackass data trolls in the government would lump people in
Read Thomas Sowell Discrimination and Disparities
https://www.hoover.org/research/discrimination-and-disparities-thomas-sowell
view on youtu.begood video
If only more black folks were familiar with Thomas Sowell who has been ostracized by black politicians and activists
Most people are asleep and clueless. There is no particular demographic to the sleeping humanoid. We don't need to fix other people, anyway. We only need to own our actions and take care that we do the right thing.
The locus from within is the teacher.
Diversity metrics are about how many blacks not in this positive category
It's dumb. It's Keynesian. It's all about central planning and it's got nothing to do with how individuals operate. It's a self fulfilling problem.
Could you please explain that in more detail?
Credit scores vary by race so looking at delinquency by race is important.
Mormons and Jews have high credit scores.
More useful than USA 🇺🇸 states
This is news to me, I had no idea that it worked that way in the US. As far as I know, it doesn't exist here in Europe and it was simply unthinkable, it's not even a topic of discussion.
https://m.stacker.news/19039
insane
This is not surprising to anyone who lives in USA 🇺🇸.
Only a European would clutch his pearls about living in a multi racial or cultural society
Wonder how bad this gets, they're already talking about no rate cuts this year so more people will be falling under the weight of servicing that 20% interest rate
That is fucking bonkers
Credit card interest rates are the most expensive bank credit available .. obscenely expensive .. things are getting really bad especially in those states where 25%+ of credit card holders aren't making minimum payments
https://www.investopedia.com/average-credit-scores-by-race-5214521
https://m.stacker.news/18990