America Is Being Buried by Debt

A recent report by Bloomberg reveals a shocking fact about the economy: Americans are using debt to pay for spending more than any time in history! After bingeing on credit for a half decade, U.S. consumers are now being crushed by a record $13 trillion in household debt!

What’s worse, the percentage of consumer debt that is delinquent has risen for two consecutive quarters! Americans can no longer afford the massive debt they’ve amassed. Sound familiar? Yes, it’s 2008 all over again.

Consumer spending notched its weakest gain in the first quarter since the end of 2009, causing corporate sales growth to plummet. Debt delinquencies are rising even in a “good” job market because wage growth has averaged a paltry 2.2% a year while consumer expenses have skyrocketed.

According to UBS, a staggering 17% of U.S. consumers said they were likely to default on a loan payment over the next year! 90-day delinquencies rose two-quarters in a row for the first time since the crash of 2009. HALF of Americans said they could not pay a hypothetical $400 emergency expense if they needed to!

The fastest-growing types of borrowings have been student loans, credit cards and auto debt – in other words, debt that has ZERO collateral! So this time, when loans blow up across the country, they’ll be nothing for the banks to foreclose on!