US Consumer Debt Crisis: $575B in Non-Mortgage Interest, 130% Increase in 3 Years

Recent reports indicate a significant rise in average interest rates on credit cards, with levels of revolving credit continuing to increase rapidly for companies like Visa ($V), MasterCard ($MA), Discover Financial Services ($DFS), American Express ($AXP), and Affirm Holdings ($AFRM). This trend is accompanied by a notable surge in non-mortgage interest payments for consumers, as car loan and credit card delinquencies reach the highest levels in over a decade. Additionally, companies such as Capital One ($COF) and Synchrony Financial ($SYF) are experiencing new highs in net charge-off rates for domestic credit cards, signaling potential concerns about consumer debt sustainability. Furthermore, for the first time in history, interest payments on non-mortgage debt in the US have matched those on mortgage debt, totaling $575 billion. This represents a staggering 130% increase in household interest payments over the past three years, highlighting a significant shift in the financial obligations of American households.