Credit Card Delinquencies Are on the Rise – And May Be a Harbinger of Recession

Wells Fargo reports a worrying rise in Americans defaulting on credit card payments, signaling potential economic downturn. Small and medium-sized banks are feeling the strain as delinquencies soar, especially amidst recent major bank failures. Credit card debt has spiked to an unprecedented $1.03 trillion, up 4.6% in the last quarter alone. Amplifying concerns, the average credit card interest rate has peaked at a staggering 20.63%. With many using credit to counteract rising costs, this could result in extended debt periods, making purchases significantly more expensive in the long term.