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Why is credit card debt rising again?

Jan 29, 2024
Delinquencies are up, especially for people with lower incomes and multiple types of debt, according to the New York Fed.
People with jobs feel comfortable spending money on their credit cards, says Liz Ann Sonders, chief investment strategist at Charles Schwab.
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Delinquency rates rise for some types of household debt

Jan 8, 2024
But other positive factors in the economy are limiting the potential damage, economists say, like low unemployment.
Loan delinquencies are rising the most among young borrowers, low-income borrowers and borrowers with multiple types of debt.
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The Fed might cut interest rates soon. That's weighing on business owners' plans.

Jan 2, 2024
Do they wait for lower rates in the future or borrow what they need today? It’s a question of cost versus opportunity.
Some construction projects have been paused or postponed until interest rates fall, said John Kirk, a developer in San Antonio.
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Colleges and universities may find borrowing harder to do and more expensive

Dec 7, 2023
Their customer base is shrinking and there's no appetite for raising prices, aka tuition.
Some schools are already cutting costs by eliminating whole academic departments and laying off faculty, says Catharine Hill with education non-profit Ithaka S&R.
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For some business owners, higher interest rates are a non-issue

Dec 4, 2023
The Federal Reserve has been raising interest rates for almost two years now, affecting virtually everyt;hing in the economy. But some businesses have been relatively insulated from rate hikes.
Bryan Hughes, owner of a snake removal and relocation service in Arizona, says his business isn't sensitive to how the broader economy is doing. "Our customers are largely driven by behavior of the animals," he said.
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Americans have almost $990 billion in credit card debt

Jun 9, 2023
But with interest rates high and wage growth slowing, that level of spending is becoming unsustainable.
Between early 2021 and mid-2022, about 10 million people got credit cards who hadn’t had them before.
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Could financial warning labels help borrowers avoid risky loans?

May 29, 2023
Some experts back the idea for certain high-interest loans. But it likely wouldn't put off desperate short-term borrowers.
A man exits a payday loan store in London. Some experts say a warning label for certain high-interest loans could be beneficial.
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2023 has been a year for bankruptcy

May 18, 2023
More than 230 companies declared bankruptcy before the end of April. What is happening?
David’s Bridal is among the more than 230 companies that declared bankruptcy before the end of April.
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Why is it so hard for Congress to deal with the national debt?

Apr 20, 2023
Reining in our debt amid the debt ceiling battle would require big — and painful — changes to government spending and taxation.
House Speaker Kevin McCarthy's terms for lifting the debt ceiling would limit discretionary spending, roll back some tax credits, end student loan forgiveness and repeal additional IRS funding, among other things.
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Businesses and consumers are borrowing more, despite rising interest rates

Mar 1, 2023
Total loan balances rose from last quarter and year over year, according to the FDIC. There are good reasons to borrow now.
Some consumers are opting to use home equity loans to pay off credit card debt.
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