Americans now owe $1.28 trillion on their credit cards. That number hit a new record in Q4 2025, climbing to a level never seen before.
Behind that headline figure though, there’s a split. The top half of earners are racking up points on flights and fine dining. The bottom half are borrowing to cover groceries and rent at an average APR above 22%, and a growing number of them are falling behind.
Serious delinquencies have hit their highest level since the aftermath of the financial crisis, with states like Mississippi seeing more than a third of card balances in distress.
And now, a political wildcard: the Trump administration has proposed capping credit card interest rates at 10% for one year. Banks say it would shut millions out of credit overnight. Consumer advocates say the industry can absorb it. The truth probably depends on which side of the income split you’re standing on.
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– TIMESTAMPS –
0:00 Intro
1:13 Background
4:11 What the Headlines are Hiding
7:11 Class-level Financial Distress
10:58 Banks, Markets, and the Trump Card: No Cap?
15:55 What Happens Next
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading stocks poses considerable risk of loss. The speaker does not guarantee any particular outcome.
#creditcard #debt #usdebtcrisis
Credit to : Coin Bureau Finance