Concerns over rising credit card debt levels in the US and UK are mounting as 'buy now pay later' schemes gain popularity, leading to fears of financial instability. Total revolving credit in the US has surged to $1.3 trillion, while savings rates have dropped significantly. Luxury fashion costs are increasing, prompting consumers to seek alternative brands, impacting traditional department stores and fashion companies like Lululemon, Costco, Nike, and Ulta.
🇺🇸 Fashion brands keep cutting costs to make up for lowered revenue https://t.co/cDU3zukR0E
For years been warning about BNPL. Now 27m are caught in it and half have paid late repayment fee. After debacle of Wonga no government could claim ignorance on high cost credit - what vested interest is stopping them protecting our constituents from these legal loan sharks? https://t.co/yTPExJjkaP
🇬🇧 Fears of spiralling debt as ‘buy now pay later’ credit quadruples in UK https://t.co/X8oDoID2dC
The US Consumer: It’s not just $LULU that’s in the dumps Other consumer discretionary stocks are in the pits: Costco ($COST), Nike ($NKE), and Ulta ($ULTA). If you zoom out, you can see the *theme is down* They all issued weak forward guidance. Each also has a unique story… https://t.co/tgbl8cgp0H
Total credit card debt is skyrocketing as savings rates have crashed. Total revolving credit in the US is now at $1.3 TRILLION, up from ~$960 billion in 2021. Meanwhile, the savings rate has plummeted to just 3.6% as affordability hits record lows. Interest rates on credit… https://t.co/H983W12r52
Fears of spiralling debt as ‘buy now pay later’ credit quadruples in UK https://t.co/UT8KuzqNN7
The cost of luxury fashion is soaring, and women who once routinely splurged are rebelling against catwalk purchases. What are they buying instead? These alternative brands. https://t.co/xBpm96CpSJ https://t.co/xBpm96CpSJ
🇺🇸 Why US department stores have most to fear as credit card debt sours https://t.co/rzJX2fISgF