Credit Card Debt is at a Record 1 Trillion
Mastercard and Visa two of the worlds largest credit services and processors are making money hand over fist. You also can make money from the credit business, and below I’ll show you how !
Mastercard and Visa, you see the logos every day on your credit or debit cards but you don’t think much of it, why is that?
Mastercard … started a campaign in 1997 and makes use of the slogan "There are some things money can't buy; for everything else, there's Mastercard …
With the making of that slogan, Mastercard became a household fixture as well as its peer Visa
With the recent announcement that American’s are 1 Trillion in Credit Card Debt it’s brought me to the question, “Who exactly is getting paid?” from this All and so here we’re.
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Let me bring you up to speed on it all
Total credit card card debt increased by $45 billion in the April-through-June period, a rise of more than 4% and just above $1 trillion.
The Fed's measure of credit card debt 30 or more days late rose to 7.2% in the second quarter, the highest rate since the first quarter of 2012
That took the total amount owed to $1.03 trillion, the highest gross value in Fed data going back to 2003
So we’re in a tough economic time which has the potential to be devastating for many households if it’s not contained. Most of the pandemic money has ran out, the savings wiped away from stimulus payments issued in 2020,2021 by the U.S Government. What we’re faced with is credit debt that’s peaking beyond its capacity
The increase in credit debt as a total household debt went from about $16 billion to $17.06 trillion, a record on the total
Mastercard and Visa on average make about 30 cents for every $100 dollars that you spend using their cards
This visual below shows their market share including others showing 70% of the market share belonging to them both
So if credit usage is at all time highs, who is making money off of it ? Mastercard and Visa
Card usage is up or near its all time high, as mentioned before many households have benefitted from excess savings and pandemic-related debt forbearances over the past three years, but many of those benefits are coming to an end such as student loan potential forgiveness and forbearances
As card use grows, so has the delinquency rate meaning cards over limit or late. It’s understandable but with that said, let’s all pray American’s find some solace in the fact that Inflation “seems” to be under control for now and we may have a soft landing as many experts forecast meaning bringing prices down without any significant damage to the economy. The good thing about this time compared to other recessions like 2008 there are plenty jobs still out there and it’s not tough a labor market as past times.
Hopefully you learned some about the credit situation from this brief content. Please give this a like and share “if” you found value it helps with the algorithms and being seen plus also helps me understand what you like
If you’re looking for ways to capitalize off this information from an investing standpoint you should watch this video I created on this All
Monk
America is $1 Trillion in Credit Card Debt: Record Credit Debt could Spark National Crisis (But Why?)
Tap below to watch