“Buy Now Pay Later” Issues Stark Warning to the Economy

More data released today which shows the US economy has taken a turn for the worse. Consumers are running out of options and are turning in huge proportions to alternate means to stay afloat. One of those alternatives, however, is being closed off as the American banks are now actively cutting back risk while going on a buying binge for safety.

Eurodollar University's Money & Macro Analysis

nerdwallet 2024 State of Consumer Credit Report

CNBC 25% of consumers recently used a buy now, pay later loan, report finds. What to know as they become popular

FRBNY HOUSEHOLD DEBT AND CREDIT REPORT (Q1 2024)

[nicolasbenson]

The economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[micheal_mills]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[Donalddavies-gcrb]

Someone said that it's time to be concerned when you start to see individuals shoplifting groceries rather than big-screen televisions, and i agree. Truth is, inflation will never reach 2% ever again, maybe in the next life, but not this one. Anyone purchasing groceries and gasoline is aware that real inflation is much over 10%; they simply lie about it like cheap blankets. In reality, interest rates would be in the 20s because of how high inflation is. But then despite the severe bear market, I am aware of certain investors that continue to earn over $365, 000. Wish I could accomplish that.

[grilledlettuce]

Been blasting my balances down. I’ve been irresponsible for years. Destroyed $10000 from my balances I the past 2 months. Almost back to 0 debt again 🙏

[d.d.]

Consumer credit has been giving us a false sense of security about the health of the middle class for decades now.

[HAW_]

I paid off my credit card and they lowered my balance by 50%. Crazy!

[primecash]

March is the lowest month for mortgage delinquencies, because income tax returns. Many Americans won't make it to next March.

[Gary-vorm]

Just heard another study today (May 28) that *_"one in four fear homelessness the most."_*

[AGoogleUser-hfzg]

Tried to get a credit line at my local bank with whom I've been doing business with for over ten years, I have an 800+ credit score and no debt but they gave me a smaller credit line than the one I got years a go when income was lower and credit score was much lower?? ???

[Cinthia-gkip]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[jimmyhvy]

It took me 30 years, Now i am Debt Free :)

[shadowboxer]

I’ve been paying down my debt with my part time job, paid all my credit cards off now I only have 3 loans left, but they total 10 grand. 😢

[janentomenkafka]

As a Belgian, I have the impression that Americans use their credit card a lot more than we do. Even when there is no crisis on the horizon. If your expenses are higher than your income, you have to cut back expenses. The only thing I have ever bought on credit is my house. Maxing out your credit card means giving 15% of your salary to the bank, and leaves you with even less money.

[bgiv]

Instead of saying that the workers can't keep up, wouldn't it be more accurate to say that companies aren't paying enough for labor? I mean if they're just farming human bodies, then can't we still admit when they're doing it poorly

[ewallt]

I saw a video by an apartment buildings owner who said many renters were using credit services to pay for their rent.

[kalicambria]

And yet... bonds spiked 10 basis points today

[chioma]

My credit union is offering me a 9.99% personal loan up to $10k and 6.59% for a used car loan and 6.39% for a new car.
I was laid off last November but resumed working after two months, paying Cobra now.

Not currently in debt but everything is more expensive now and even my extremely frugal ways aren’t keeping them at bay.

And need another car now. Waiting for them to go down but will not finance.

Learning new skills at middle age.

[DataJuggler]

The best thing that ever happened to me, was having a credit of score of 0. It isn't the American Way, but if I want something, I save for it.

[rubyvolt]

this comes along with the auto repocalypse and the commercial real estate death spiral. ALL AT THE SAME

[phild]

We like so many pay with cards, but our cards are paid off monthly. That 1-3% cash back we earn comes from people paying massive monthly interest.
Wife and I decided to take 25K from 5.1% CD and getting more gold in the home. Ounces and grams.
Current assets over 700k, stocks bonds, cash, CD's, metals, real estate.
Home includes 1/2 acre with garden, fruit trees, bushes and vines. We've been taking care of this for a while.