60 Percent Of Americans Believe A Recession Is Coming – But Consumers Continue To Pile Up Debt At A Frightening Pace
60 Percent Of Americans Believe A Recession Is Coming – But Consumers Continue To Pile Up Debt At A Frightening Pace by Michael Snyder for The Economic Collapse Blog
We haven’t seen survey results like this since just before the last recession. Right now, 60 percent of Americans believe that a recession is “very or somewhat likely in the next year”, and the reason why that figure is so high is because there is already a tremendous amount of evidence that the economy is slowing down all around us. As I have been documenting repeatedly, U.S. economic performance has not been this dismal since 2008 and 2009, and the slowdown seems to be gaining pace as we move toward the end of 2019. So it really shouldn’t be a surprise that a solid majority of the country thinks that the next recession will officially begin very soon. The following comes from ABC News…
Ratings of the U.S. economy overall, 56% positive, are down from 65% last fall in this poll, produced for ABC by Langer Research Associates. Most ominously, 60% see a recession as very or somewhat likely in the next year. That’s within sight of the 69% who said so in November 2007, in advance of the Great Recession.
But at the same time, U.S. consumers continue to pile up more debt at a frightening pace.
According to NBC News, total revolving credit shot up at an 11.25 annual pace during the month of July…
According to the Federal Reserve’s consumer credit tracker, revolving credit — a category in which credit card debt predominates — increased at an annualized rate of 11.25 percent in July, the most recent month for which data is available.
“In terms of revolving debt, we see spikes like this every so often, but they don’t jump by double digits all that much,” said Matt Schulz, chief industry analyst at CompareCards. Typically, big jumps occur around the holidays, though — not in July.
If a severe economic downturn really is coming, the smart thing to do would be to get out of credit card debt.
But these days Americans have been trained to be very short-term thinkers. And when things start to get tight, it is really easy to put expenses on a credit card and worry about them later. This is something that I did when I was a much younger man, and it is something that millions of American families all over the nation are doing right now.
When the money simply isn’t there, it is just so tempting to whip out a credit card. But credit card debt is one of the most insidious forms of debt because of the high interest rates most credit card companies charge. And at this moment credit card companies are jacking up rates to a degree that we haven’t seen in many years…