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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

300 sats \ 4 replies \ @BlokchainB 5 Mar

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.

97 sats \ 2 replies \ @0xbitcoiner OP 5 Mar

Are you sure that new money is created when someone uses a credit card? I must be missing something, can you explain it better?

200 sats \ 1 reply \ @BlokchainB 5 Mar

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.

70 sats \ 0 replies \ @0xbitcoiner OP 5 Mar

thanks ! I assumed the reserve requirement was zero, but maybe it's different for credit.

The annual indexation of these amounts is required notwithstanding the Board's action in March 2020 of setting all reserve requirement ratios to zero. The reserve requirement exemption amount for 2023 will remain $36.1 million, unchanged for 2024, consistent with the Federal Reserve Act (the “Act”).

https://www.federalregister.gov/documents/2023/11/29/2023-26212/reserve-requirements-of-depository-institutions#:~:text=The%20annual%20indexation%20of%20these,(the%20%E2%80%9CAct%E2%80%9D).

42 sats \ 0 replies \ @gmd 5 Mar

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.

117 sats \ 2 replies \ @kr 5 Mar

this seems really high - so basically 1 in 5 Americans is at least two months behind on credit card payments?

139 sats \ 1 reply \ @0xbitcoiner OP 5 Mar

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?

76 sats \ 0 replies \ @kr 5 Mar

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.

32 sats \ 6 replies \ @OgFOMK 5 Mar

It's this per capita?
What's the headcount?
Is this per household? If this is the case then as Thomas Sowell points out. Poor households remain poor but the people living in them change!
What are the metrics?

164 sats \ 5 replies \ @0xbitcoiner OP 5 Mar

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

51 sats \ 4 replies \ @OgFOMK 5 Mar

Maybe your VPN.

10 sats \ 3 replies \ @0xbitcoiner OP 5 Mar

I'm not connected to a VPN. Did it work for you?

16 sats \ 2 replies \ @OgFOMK 5 Mar

I was able to connect.

10 sats \ 1 reply \ @0xbitcoiner OP 5 Mar

Not sure what's the problem. I'll try using a different network.

16 sats \ 0 replies \ @OgFOMK 5 Mar

https://m.stacker.news/18981

16 sats \ 0 replies \ @TheBTCManual 5 Mar

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

16 sats \ 0 replies \ @btcschellingpnt 5 Mar

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

0 sats \ 0 replies \ @Bell_curve 5 Mar

https://www.investopedia.com/average-credit-scores-by-race-5214521

https://m.stacker.news/18990

0 sats \ 12 replies \ @Bell_curve 5 Mar

Showing delinquency by income tax brackets

Also by race ethnicity religion

64 sats \ 5 replies \ @OgFOMK 5 Mar

Those are terrible metrics.

Like black is not a race but the jackass data trolls in the government would lump people in

Household
Tax bracket
Race

Read Thomas Sowell Discrimination and Disparities

https://www.hoover.org/research/discrimination-and-disparities-thomas-sowell

10 sats \ 2 replies \ @0xbitcoiner OP 5 Mar

good video

0 sats \ 1 reply \ @Bell_curve 5 Mar

If only more black folks were familiar with Thomas Sowell who has been ostracized by black politicians and activists

0 sats \ 0 replies \ @OgFOMK 5 Mar

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.

0 sats \ 1 reply \ @Bell_curve 5 Mar

Diversity metrics are about how many blacks not in this positive category

0 sats \ 0 replies \ @OgFOMK 5 Mar

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.

10 sats \ 5 replies \ @0xbitcoiner OP 5 Mar

Could you please explain that in more detail?

16 sats \ 4 replies \ @Bell_curve 5 Mar

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

0 sats \ 3 replies \ @0xbitcoiner OP 5 Mar

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.

The U.S., however, isn't the only country that has a credit scoring system. Here's how some other countries around the globe measure credit:

https://www.chase.com/personal/credit-cards/education/credit-score/do-other-countries-have-credit-scores

8 sats \ 2 replies \ @Bell_curve 5 Mar

https://m.stacker.news/19039

0 sats \ 1 reply \ @0xbitcoiner OP 5 Mar

insane

0 sats \ 0 replies \ @Bell_curve 5 Mar

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

Credit Card Delinquency Rates in the U.S. by State