American Consumers Are On the Verge of Bankruptcy

Blotienso · 2026-02-24T23:11:08+00:00

The essay highlights that 12.7% of credit card debt is overdue by over 90 days, the second highest rate recorded. Despite the absence of a financial crisis, rising costs of living have led consumers to rely heavily on credit, causing skyrocketing debt levels and increasing financial strain.

Blotienso

2026-02-24 23:11:08

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12.7% of credit card debt overdue by more than 90 days. This is the second-highest figure ever recorded. The only worse time? In 2010, as a result of the worst financial crisis in 80 years. This is why this number should alarm you: During the Global Financial Crisis (GFC), the economy plunged into a severe recession. Banks failed. Unemployment rose to 10%. The government had to print trillions of dollars just to keep things running. That was when the overdue debt rate peaked at around 13.5%. Today, the figure is 12.7%. Except there’s no crisis. No bank failures. No recession. Unemployment is said to be at “record lows.” So what’s the reason? The math no longer adds up. Average credit card interest rate: over 20% Rent: up 30% since 2019 Food prices: up 32% since 2019 Car insurance: up over 50% Wages are not keeping up. They’re not even close. So Americans are doing what they always do—they’re using credit cards. Total credit card debt just hit $1.28 trillion. An all-time high. This level of consumer stress is comparable to 2008, but without any similar crisis to explain it. Many people should speak out about how crazy this situation is.

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