Leaning On The Ol' Credit Card 8/21/26

Summary

CNBC's Jessica Ettinger reports on David Rosenberg's warning about US consumer credit. Rosenberg says Fed Beige Book data show the consumer is not as strong as corporate America suggests, with lower-income households shifting from cash and debit to credit cards. He flags a 13% 90-day delinquency rate, the highest in 15 years, and a 21% average interest rate on $1.3 trillion in unpaid credit card balances.

• Rosenberg contrasts Beige Book consumer weakness with stronger corporate commentary.
• Lower-income households are increasingly leaning on credit cards.
• Households are shifting purchases from cash and debit to credit cards.
• Credit card 90-day delinquency rate is 13%, highest in 15 years.
• Average credit card interest rate is 21% on $1.3 trillion of unpaid balances.
• Rosenberg does not view rising credit card dependence as positive.