Credit card debt: A crisis that doesn’t get enough credit

LOOKING FOR EVERYONE SHOULD HAVE IT

AND HERE AT FOX EVERYONE DOES, TRUST ME CREDIT CARD DEBT IS EXPLODING IN THIS COUNTRY FOR THE FIRST TIME IN AMERICAN HISTORY, AMERICANS AS A WHOLE OWN MORE THAN A TRILLION DOLLARS JUST TO CREDIT CARD COMPANIES THAT'S 8600 BUCKS FOR EVERY HOUSEHOLD IN THIS COUNTRY, MORE THAN 3 GRAND FOR EVERY SINGLE MAN, WOMAN, AND CHILD IN AMERICA INCLUDING BABIES

THAT'S JUST CREDIT CARDS MILLIONS OF AMERICANS ALSO HAVE STUDENT LOANS, HOME LOANS, CAR LOANS, PLENTY OF OTHER DEBT ARE WE REACHING A TIPPING POINT FOR DEBT AND WHAT WOULD HAPPEN IF THE ECONOMY ENTERS ANOTHER DOWNTURN NOT THAT THAT WOULD EVER HAPPEN HAWKINS CHIEF MACROSTRATEGIST AT TAMITICA TELL ME HOW TO PRONOUNCE THAT LENORE

>> TAMATICA >> Tucker: TOO MANY VOWELS FOR ME RESEARCH SHE JOINS US TONIGHT I'M GLAD YOU ARE LAUGHING BECAUSE THIS IS A TERRIFYING SUBJECT PARTICULARLY THE CREDIT CARD DEBT SOMETHING EVERYONE CAN RELATE TO AND UNDERSTAND HOW IT WORKS IF YOU ARE A CONSUMER

THESE LEVELS SEEM VERY HIGH TO ME ARE THEY >> THEY ARE VERY HIGH WHAT'S EVEN MORE CONCERNING IS THE PACE AT WHICH WE ARE ACCUMULATING IT AND, IN FACT, THE LAST THREE MONTHS OF 2017 CONSUMERS RACKED UP CREDIT CARD DEBT AT A FASTER PACE THAN IN THE PAST 30 YEARS

SO FASTER THAN EVEN IN THE GREAT RECESSION >> Tucker: IT SEEMS LIKE THIS IS ONE OF THOSE STORIES THAT IS NEVER COVERED BUT IT OUGHT TO BE HERE YOU HAVE SOME OF THE BIGGEST COMPANIES IN THE WORLD GETTING KIDS ON CREDIT CARDS IN COLLEGE, CHARGING RATES THAT BANKS WOULD NEVER CHARGE I'M GOING TO CHARGE — I HAD MY — THE BP VISA CARD, WHAT'S THE INTEREST RATE? 282% — 28% INTEREST

ISN'T SOMEONE SUPPOSED TO BE IT'S SHOCKING ACTUALLY IT'S USURY ILLEGAL IN OTHER COUNTRIES WHY IS IT HAPPENING HERE AND NO ONE IS SAYING ANYTHING? >> BECAUSE PEOPLE DON'T SEEM TO HAVE MUCH OF A CHOICE THESE DAYS

IF YOU LOOK AT WHAT HOURLY EARNINGS HAVE BEEN, DECADE AFTER DECADE AFTER DECADE THEY HAVE BEEN GROWING AT SLOWER AND SLOWER PACE PEOPLE ARE BARELY MAKING ENDS MEET IF YOU LOOK AT THE PAST SIX OUT OF THE PAST SEVEN MONTHS HOURLY EARNINGS HAVE ACTUALLY BEEN EITHER FLAT OR THEY HAVE FALLEN PEOPLE AREN'T REALLY MAKING MUCH MONEY THEN YOU LOOK AT SPENDING

SPEND SOMETHING STILL GROWING PRETTY FAST INCOME ISN'T GROWING REALLY FAST WHAT ARE YOU GOING TO DO? TAKE THESE CREDIT CARDS AND GET DESPERATE >> Tucker: THIS IS AN AGE OLD PROBLEM WHEN THE MAFIA USED TO DO THIS IN IMMIGRANT NEIGHBORHOOD BASICALLY THE EXACT SAME THING CREDIT CARDS ARE DOING THE FEDS CRACKED DOWN ON IT AND SENT THEM TO PRISON BECAUSE YOU ARE NOT ALLOWED TO DO THAT WHY DO WE LET THE CREDIT CARD COMPANIES DO THE SAME THING

>> I THINK PART OF WHAT WE ARE SEEING IS THAT A LOT OF THE FINANCIAL SERVICES HAVE BEEN STRUGGLING TO MAKE MONEY EVERYWHERE BECAUSE WE HAVE HAD HAD INTEREST RATES PUSHED DOWN SO, SO, SO LOW THAT DOESN'T GIVE THOSE BANKS MUCH ROOM TO WORK TO MAKE MONEY THEY BORROW — THEY TAKE MONEY FROM YOU INTO THE CHECKING ACCOUNT AND LEND IT OUT LIKE A MORTGAGE OR SOMETHING THOSE RATES HAVE BEEN SO LOW THAT IT'S BEEN TOUGH FOR THEM TO MAKE MONEY THEY HAVE GOTTEN DESPERATE AND GONE OUT FURTHER AND FURTHER INTO THESE KIND OF EDGY ACTIVITIES

JUST TO TRY TO MAKE MONEY >> Tucker: PREYING ON THE WEAK >> EXACTLY >> Tucker: YOU SAID LOW INTEREST RATES THIS IS ONE OF THE MANY UNINTENDED CONSEQUENCES OF FED POLICY

WHAT HAPPENS WHEN THEY GO UP AS THEY ARE GOING TO? >> YEAH, WELL, YOUR CREDIT CARD PAYMENTS ARE GOING TO GROUP A LOT HIGHER AS WELL THEY ARE GOING TO BE GOING FASTER AND FASTER LOOK AT WHAT ALL THIS DEBT THAT IS OUTSTANDING AND YOUR PAYMENTS EVERY MONTH EVEN IF YOU DON'T ADD ANYTHING MORE ON TO YOUR