Household Debts, Debt-to-Income Ratio, Delinquencies, Collections, Foreclosures, and Bankruptcies of our (not so) Drunken Sailors in Q3 2025 – https://wolfstreet.com/2025/11/05/household-debts-debt-to-income-ratio-delinquencies-collections-foreclosures-and-bankruptcies-of-our-not-so-drunken-sailors-in-q3-2025/
Yikes.
Household Debt Ticks Up to $17.94 Trillion
Source: https://www.newyorkfed.org/microeconomics/hhdc
Yikes.
The TikToker touting “generational wealth” isn’t alone in promoting the benefits of slapping a child’s name onto credit card debts. TikTok is flooded with influencers who insist that authorizing minors to use their parents or older relatives’ credit cards will set them up for a bright future.
Many of the videos uploaded to the platform are captioned with the hashtag #generationalwealth and suggest that the authorized credit card user trick is a secret hack used by the wealthy.
‘Generational wealth’ influencers are touting the benefits of parents adding their kids to credit card debt—but experts warn it could go badly wrong — https://fortune.com/2023/10/21/building-generational-wealth-parents-children-credit-card-debt/
Parents, don’t do this. TikTok should not be your source for financial advice.
Instead teach your children to save and invest, to live within their means, to understand the difference between needs and wants, to not become an indentured servant to the banking industry.
Subprime Auto Loans Blow Up, Get Very Messy
Delinquencies of auto loans to borrowers with prime credit ratings were near historic lows (0.27% in March), according to Fitch data. In the pre-Virus Good Times, it was the subprime loans – with credit scores below 620 – that were blowing up…
In mid-March, the world changed for subprime lenders. Delinquencies were already exploding in the Good Times, and now they’re in utter turmoil.
In addition, it is likely that prime loans are becoming delinquent as well, as many of these people too have lost their jobs – this includes dentists and other professionals with high incomes and big debts and lots of expenses and no savings, who’d suddenly had to close their operations, and their cash flow disappeared. If they fall behind on their debts, they’ll be subprime in a hurry.
Reprinted from the original post at https://wolfstreet.com/
Go to this link for the full article.
Note that here in the US we rank #11 worldwide. Read the article to find out who’s in the top ten.
Source: Michael Hudson: Are Students a Class? | naked capitalism
“Debt is not just a credit instrument, it is an instrument of political and economic control.”
Matt Stoller
Every now and then you stumble upon an article that effectively changes your world view.
I’ll keep my thoughts and opinions on this topic to myself.
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