Schiff Warns US Credit-Card Delinquencies Hit Post-2008 High

US households have faced a prolonged squeeze from elevated inflation, high interest rates and more expensive revolving credit, making credit-card repayment trends an important gauge of consumer resilience. Economist Peter Schiff argues that worsening delinquencies show financial buffers are eroding for some borrowers. The development matters because household spending is a major engine of the US economy, and mounting debt stress could eventually weaken consumption and undercut the expansion.

Schiff said the serious delinquency rate on US credit cards has climbed to its highest level since the 2008 financial crisis. The report did not specify the exact rate, the institution that compiled the data or the period covered. Schiff said the deterioration contrasts with official claims of a prosperous economy and indicates that households remain under heavy pressure as living costs and borrowing expenses stay high.