According to this article delinquency rates on car and credit card loans more than doubled for households earning 150k+ from 2023 to (presumably)2024! The delinquency rate MORE THAN DOUBLED!
. . . From somewhere around 0.17% to 0.34% of all loans in this class
So, no households earning more than 150k are not struggling.
Reporting relative percent increases for extremely small values is a journalism sin.
Note that it is still a small proportion of higher-income earners who are underwater, it’s just just a higher percentage than before:
the delinquency rate for households earning at least $150,000 now stands at about 0.34%, versus 1.75% for low-income households.
So it’s not like the rich are suffering, it might be certain people in certain high cost of living places who overextended themselves …
$150k a year income is far from rich. I’m not arguing that they aren’t better off that a household earning $50k but it’s not all lollipops and roses like you’re assuming. Tax wise, these people get hit the hardest because they’re earning enough to pay high tax rates but far from enough to hire fancy accountants or structure their money in a way to pay lower rates.
This doesn’t even account for CoL where some places like the bay would classify $150k as “low income.”
My dad makes this much, in the SF bay area this only allowed us a middle class lifestyle. It’s just so expensive to live here
WTF. My household earns almost 100k/yr. Me, my spouse, and child live comfortably without financial issues. 150k sounds pretty good to me.
Looking into the article more closely, it has doubled…to 0.34%.
So that’s about 437,000 households, which isn’t nothing. If you put them all in one US city, it’d be bigger than Jacksonville, which would put it into the top 10 by population.
Still, it makes it easy to not be affected; just don’t live in Jacksonville.
What city do you live in? Sounds like a good deal
Its impossible to outearn irresponsible spending
Have you considered buying two extra BMWs and doubling the size of your house? Gotta live paycheck to paycheck and make those neighbors jealous!
Luxury SUVs on lease are obviously a wise financial move.
Got to make sure to have 3 kids to make sure your finances are in order.
Lifestyle inflation.
People are really, really good at spending all their money, then living paycheck to paycheck with their BMW and too-many-sqft house payment.
There are places on CT alone where 150k is barely middle class. And moving isn’t an option because it’s either too expensive or it would take the person out of commuting distance.
Then the layoffs hit and people spend their money paying for the too high cost of living in ct, with little job prospects.
Nah, it’s survivorship bias.
The wealthiest people are wealthy because they always took big risks that kept paying off.
So someone who desires that, never puts safe money away, they never save.
Every penny is invested, every purchase goes on a credit. Because why pay now when you can invest that money for free another 2 weeks?
As long as “numbers always go up” it works…
But then the market crashes, and everything is still tied up. You don’t have funds to pay the bills, and if you sell to pay the bills, you’re realizing market loss.
So it’s “lifestyle change” but not always wanting better stuff
The wealthy literally have a different lifestyle than the “paycheck to paycheck” the majority of people have. We can both have our shit completely fucked overnight thru no fault of our own
For most of us, that’s just reality. For the wealthy it’s a choice.
Nothing really crashed, my stocks are doing well. I also had no problem selling stuff at a loss. This is just being irresponsible
