The U.S. debt bubble continues to balloon, and one day it will pop, leaving behind immense damage that will ruin households, especially as the Federal Reserve gradually raises interest rates.
According to WalletHub, a personal finance website, U.S. consumers added $29.8 billion in credit card debt during the second quarter of 2018, the fourth-largest Q2 boost in recorded history.
The cities with the biggest debt increases were:
– Darien, Connecticut
– Lake Forest, Illinois
– Southlake, Texas
– Beverly Hills, California
– Dix Hills, New York
But as borrowers take on more debt, they should expect to pay more to borrow.
Later this month, the Federal Reserve is expected to raise interest rates once again. A rate hike is projected to cost American consumers an additional $1.6 billion in 2019. The Fed is currently costing households approximately $42,000 per year amid the normalization of rates.
No wonder why 98 million Americans say rate hikes are terrible for the economy.
The report found some other interesting insights:
– 27 percent Americans say President Donald Trump knows how to grow the economy better than the Eccles Building.
– 59 percent say credit card interest rates are too high.
– 46 percent do not know when the Fed last raised rates.
In the end, Americans can expect to have an extra $100 billion in debt once the year is complete.
Leave a Comment