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- Americans’ credit card debt hits record $1.23 trillion
Americans’ credit card debt hits record $1.23 trillion
That's about a quarter of the value of Nvidia, but they're not gonna pay it off for ya
Matt Davis
November 07, 2025
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Greetings N2K reader!
Pick this week’s winning famous News HaikuTM entry in today’s poll below. And now for something completely different…
—Matt Davis, Need2Know Chedditor
News You Need2Know
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What’s the stock market up to, eh?
Companies mentioned in today’s newsletter
Americans’ credit card debt hits record $1.23 trillion
I love credit cards. You get unlimited money and you never have to pay it back. That’s how it works, right? There are no consequences?
Well, household debt in the United States has reached an eye-watering $18.59 trillion, according to recent data from the Federal Reserve Bank of New York. This marks an increase of $197 billion in the third quarter alone and a staggering $4.4 trillion rise since the end of 2019, illustrating how economic challenges, including the pandemic, have impacted borrowing.
Particularly concerning is the record-high student loan debt, which now stands at $1.65 trillion. Nearly 10% of student loans are delinquent, with missed payments from federal loans — paused during the pandemic — now appearing in credit reports. “Student loan delinquencies are at a record high, but auto loan and credit card delinquencies aren’t as high as they were in the middle of 2024,” noted Ted Rossman, senior industry analyst at Bankrate $RATE ( ▼ 0.63% ) , in a research note.
Credit card debt also hit an all-time high, with outstanding balances climbing $24 billion to $1.23 trillion this quarter, up nearly 6% compared to last year. Auto loan balances remained steady at $1.66 trillion.
While researchers at the New York Fed highlight that household finances are “pretty strong” overall, Rossman acknowledged disparities, saying, “The K-shaped economy shows the rich getting richer while the poor get poorer.”
Song of the day: Christian Sands, ‘Can’t Find My Way Home.’
A decade ago I drove across Mexico with an aging Pulitzer-winning journalist to go surfing. My life was in something of a mess and we had a fantastic time. He played me Blind Faith’s original version of this song by Steve Winwood, and I couldn’t believe I hadn’t heard it before. It was perfect. Five years later I’d discover this version by pianist Christian Sands, which is one of the best jazz covers of a rock song I’ve ever heard. It’s a slow burn, which is why it took me so long to recommend it. Enjoy.
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*This counts as journalism, right?
FAA to cut air traffic by 10% amid shutdown strain
It’ll happen at 40 major airports starting Friday. The decision comes as the government shutdown enters its 36th day, the longest in U.S. history. The cutbacks are expected to impact 3,500 to 4,000 flights daily, though specific airports haven't been disclosed yet.
“This is proactive,” Transportation Secretary Sean Duffy explained during a news conference on Wednesday. He acknowledged significant pressure on the U.S. aviation system and expects more cancellations due to reduced flight capacity. “We thought 10% was the right number based on the pressure we were seeing,” he added.
You know what else would be proactive, Sean? Reopening the government. Still…
FAA Administrator Bryan Bedford emphasized the safety aspect of the decision, saying, “As we slice the data more granularly, we are seeing pressures build in a way that we don’t feel, if we allow it to go unchecked, will allow us to continue to tell the public that we operate the safest airline system in the world.”
That’s a long way of saying “don’t get on an airplane.”
Nick Daniels, President of the National Air Traffic Controllers Association, warned, “It could take weeks to recover” from these disruptions.
Post of the day: Politics is always surprising
Oh my god???
Marjorie Taylor Greene: “I will praise Nancy Pelosi. She had an incredible career. I served under her speakership in my first term of Congress. And I'm very impressed at her ability to get things done. I wish we could get things done for our party.”
— Charlotte Clymer 🇺🇦 (@cmclymer)
4:39 PM • Nov 6, 2025
Quote of the Day
We routinely review our workforce...and at times rebalance accordingly.
You can soon earn United points on Lyft rides
United Airlines $UAL ( ▲ 0.02% ) and Lyft $LYFT ( ▼ 0.19% ) have teamed up for a rewards program that could benefit frequent flyers and everyday commuters alike. Starting November 5, travelers can earn United MileagePlus miles for qualifying Lyft rides. Rewards range from 1 to 4 miles per dollar spent, depending on the type of ride and if it’s prescheduled for airport travel.
Under this partnership, riders earn 4 miles per dollar on prescheduled airport rides —the highest reward tier. Additionally, premium rides like Lyft Black or Black SUV earn 3 miles per dollar, while Standard rides earn between 1 and 2 miles, depending on associated profiles. Harlan Vaughn, a writer at NerdWallet, points out that this partnership is “an easy win” for travelers already using rideshare services, even if the bonus reward for first-time Lyft users (1,000 miles) is modest, valued at just $12.
The program outpaces Lyft’s other travel partnerships, such as Atmos and Hilton Honors, which offer fewer points on prescheduled airport rides. United’s 4x earning rate for airport rides is by far the best.
Of course, you’ll need to get on a plane if you want to use these points, which I don’t recommend based on the story above. I also don’t recommend putting the flight on your credit card, either. But give it time.
Should you check your 401(k) today?
👎️
No, ma’am.
IBM announces layoffs, blames AI
Can anybody tell me what “Watson” actually is or does? Bueller? Anyone?
Fortunately it’s not a question anyone at IBM will need to worry about for much longer as the firm’s bosses are content to simply ask ChatGPT.
The firm is making moves in its strategy to “pivot” toward high-margin software and AI-related cloud services, announcing a workforce reduction planned for the fourth quarter of 2025. While the company’s statement didn’t specify exact figures, the layoffs are expected to impact a “low single-digit percentage” of IBM's global workforce —potentially numbering in the thousands, given IBM's 270,000 employees.
In its official statement, the company said: “We routinely review our workforce...and at times rebalance accordingly. In the fourth quarter, we are executing an action that will impact a low single-digit percentage of our global workforce.”
Nothing to see here, in other words. My best mate’s dad worked like a dog for IBM for 30 years and had three kids. He looked forward to his retirement more than anything, then died, furious, of bowel cancer within six months. Note to self: Take your PTO.
Under CEO Arvind Krishna's leadership, IBM has doubled down on software investments, betting heavily on the expanding market for AI-powered cloud technologies. Recent concerns have arisen after IBM reported a slowdown. Following the announcement, IBM shares — up 35% this year — dipped nearly 2%, reflecting investor concerns about execution risks.
How DC is sharing its movie success with its comics division
—This is the latest in a series of guest columns on the business of movies by Grant Keller.
In the bottom right corner of the poster for James Gunn’s 2021 “The Suicide Squad,” it says “get DC comics at comics shops.” That was the first time any comic book movie has explicitly stated this to its viewers.
Despite superheroes dominating 21st Century cinema, earning hundreds of millions upon hundreds of millions at the box office, that success hasn’t blown back on the comic book industry. Movie studios are comfortable digging through comic bins for hot new intellectual property, but they are not comfortable returning the favor and sharing their success.
DC $WBD ( ▲ 0.27% ) started to turn this around in 2022 with “The Batman.” The comic book company created a box set with stories that inspired the movie, such as “Batman: The Long Halloween” and “Batman: Ego.” It was new reader-friendly material that would ease people into this wonderful medium.
Poll of the day: Pick a winning haiku!
Poll of the day: Ai Ai, Sir.
We asked: Do you like the sound of an AI shopping assistant?
You answered:
🟨⬜️⬜️⬜️⬜️⬜️ I do. My shopping decisions are usually dreadful. It could help. (79)
🟨🟨⬜️⬜️⬜️⬜️ I do not. My shopping decisions are usually dreadful. I don't want to make them any worse. (107)
🟨🟨⬜️⬜️⬜️⬜️ I do. My shopping decisions are usually flawless, but this could be an opportunity to further hone them to perfection. (95)
🟩🟩🟩🟩🟩🟩 I do not. My shopping decisions are usually flawless, and this punk clanker nonsense is just going to mess with the vibes. Get thee to a clankery! Begone! (248)
529 Votes via @beehiiv polls
Coming Monday — Power Players: New Episodes!
We’ve got three new episodes coming up of our Power Players show, which will air wherever you watch Cheddar at 8 p.m. starting this coming Monday. From Karandeep Anond, the CEO of Character.AI, an AI chatbot platform allowing user interaction with AI characters based on various personalities, to Justine Palefsky and Tasneem Amina, co-founders of house swapping platform Kindred, and Baiju Bhatt, the Founder of Aetherflux, which is using space lasers to beam solar energy back to earth after collecting it in orbit — get up close and personal with the founders of these companies!
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