Consumer debt at highs
Delinquencies and defaults on the rise
Even after the first rate cut it will take 1-2 years to work its way through the system
How will the consumer survive under high interest rate/ high debt environment?
https://i.redd.it/l5qcwi5wps1d1.jpeg
Posted by Lively420
45 Comments
It won’t
no surviving, just fights to the death.
You only need to worry about debt if you have assets.
“How will the consumer survive under high interest rate/ high debt environment?”
That’s a great question with a dark answer. 
SPXU
SQQQ
Consumer Debt being at an all time high is nothing new. So is the stock market.
People that are financially irresponsible, never had savings in the first place. When you hear “50% of American’s live paycheck to paycheck” it doesn’t mean the economy sucks. It means 50% of Americans suck at budgeting. Most broke people will always be broke. Most financially responsible people will always be financially responsible.
I make like $150k/yr. My mom and daughters mother, make $250k/year. Guess the 2 that live paycheck to paycheck and guess who is going to be a millionaire soon.
Why you looking at 2023 Q3 charts in 2024 Q2?
Yep this bomb won’t explode until the elections have passed. For this market everything is bullish, but eventually people will have to decide whether to pay debt or eat and I can tell you right now which they are going to choose. 
Everyone is yoloing after spending a couple years pent up inside from the kung flu
Time for a new credit card!
Looks like the average WSBers account value after discovering options trading
You all had savings?
What the hell is excess savings? This dude really had to reach deep into his bear asshole to pull out this chart.
The only two charts that matter are unemployment percentage, which is at 4% (historically low)
And the household debt % as disposable income which is historically low.
Welcome to Death Race 
Consumer debt is too low. 66% of household debt is in the form of a home mortgage. US household assets are 8x debts. It’s a problem for the bottom 30% but the top 70% power the economy anyway.
Damn I hate seeing data that confirms my feels and fears. Feel like this ticking time bomb won’t go until after the election but who knows.
Yes. My household, YES.
Saving is pointless
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Zoom out a little bit. Savings were extremely high during COVID years, which are conveniently where this graph starts.
Just get a credit card for your credit card, problem solved.
Seriously though, pleebs will think they are doing better soon as the government fires up the money printer again ….oblivious to the consequences of that.
Judging by the loss posts here, definitely.
Just print another trillion, one more one less
I’d say they are. Only keep 10k in savings for emergencies that I need liquidity for. Problem is I just had to buy a new dishwasher so I needed to take out 900. Everyrhing is getting more expensive but my paycheck ain’t getting any bigger. Replacing the 900 isn’t as quick as it was.
Woah, you mean the couple thousand dollars that the government handed out 4 years ago has been spent?
No way!
Bullish
Bullish
speak for yourself, i’m still living big off my $1,200 stimulus check from 2020.
Nice, so hopefully in 2025 people start losing their jobs ontop of having no savings. That way they are forced to sell their house, and new homebuyers can enter the market 😀
The rich get richer while the poor get poorer, ugh. Time for revolution
Well from 2020 to 2022 it was basically impossible to get a lot of things due to supply chain and covid issues. 2023/24 has seen me drop around 60% of my income directly onto projects that were delayed for 2-3 years.
I suspect the savings dip will normalize in 2 years
No worries, we now have 8 people living in the same tiny apartment to save enough!
Finally spent that $1,200 over 4 years.
This is a year behind??
This is Murica only thing we save is debt
How; with monthly subscriptions. everything is gonna be a subscription, and the minute your credit/debit card is frozen, you die
I still have some… should be enough for bitch fucking time at 5pm for the next 4 months.
They won’t. That’s the point. US is trying get the people to use up all accumulated wealth to incentivize people to work harder in order to increase productivity. Canada on the other hand is doing the same with absurd amounts of immigration. Neither will work because of the culture. It’s unbelievable how quickly they fucked up the system. It only took 25 years.
My total consumer debt is about half of my emergency fund. As much as I hate paying interest. I’m just making minimum payments because I feel really odd about the direction things are going.
“Savings” = stimulus checks
This means Fed gonna cut rates soon. So we continue to rocket
How can I cash in on this?
Just look at the credit per capita and you know what’s up
Bring back Covid it helped my spending habits so much
Bullish as usual