Wells Fargo reports a surge in U.S. consumer credit card debt, indicating potential financial stress among households.
        • Ep1cFac3pa1m@lemmy.world
          114·
          9 months ago

          My guess would be Gen X and older millennials. Old enough to have seen all the things their parents could afford so they want them for themselves. Seems like the younger crowd is less focused on gathering possessions. I base this on my observations as an older millennial, and have absolutely no scientific data to back it up.

          • deweydecibel@lemmy.worldEnglish
            14·
            9 months ago

            Why are you presuming the credit debt is for superfluous purchases? Prices have shot up across the board, student loan payments resumed, bills and rent are always due, groceries need bought.

            If they were using credit to buy meaningless stuff, why the spike now?

          • Uranium3006@kbin.social
            11·
            9 months ago

            I bet it’s being spent on groceries a lot more percentage wise than before. as a gen Z I don’t place worth or care about fake social status from possessions but I still want stuff, problem being I can’t afford it anyways

          • Maeve@kbin.social
            2·
            9 months ago

            I own nothing and bad credit (medical). Best of both worlds!

            Eta: And am older Gen x

    • Kalkaline @leminal.space
      21·
      9 months ago

      Right there with you, wish I could do it a little faster, but I’m almost to the point where I can knock out a bunch of it.

  • oehmEnglish
    9·
    9 months ago

    Does this include all credit card usage or just credit card usage that has accrued interest?

    • yggstyle@lemmy.world
      5·
      9 months ago

      I believe it is based on the utilization of credit (so the total sum, compared period to period)

      It’s gone up. Considerably. Contrary to what that picture shows a lot of households are absorbing the combination of shrinking portions of food / rising prices with cards.

      • The_v@lemmy.world
        10·
        9 months ago

        Is that just straight usage or outstanding balance?

        My usage of credit cards has changed over the years.

        It used to be I used them very sparing for infrequent large purchases. Then paid them off in installments.

        Now I use a credit card for most regular purchases because of the cash back and security if the card number gets compromised. I also pay it off in full every month.

        So my usage has increased by 10x but my outstanding balance is 0.

        • oehmEnglish
          3·
          9 months ago

          Same that’s why I was curious. I use credit cards for all purchases for added security and other perks but have never carried a balance. While i technically have debt between paying it off every month, it has never accrued interest.

        • yggstyle@lemmy.world
          1·
          9 months ago

          I believe it’s existing balance at the end of the period so technically while you pay it off that balance would be reported (though it would change month to month based on whatever that new balance is.)

          These are market wide reported numbers so it’s hard to say exactly what metric they are using under the hood… so this is my best guess. In terms of the reported numbers they have been rising though - by whatever metric is being used.

          • The_v@lemmy.world
            1·
            9 months ago

            So it could be either rising usage or increasing debt load or likely a combination of both. Just how much from each, we don’t know.

            The number that matters next will be number of bankruptcies.