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US credit card defaults jump to highest level since 2010 (www.ft.com)

submitted 1 month ago by MicroWave to c/economics

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Summary

US credit card defaults have surged to their highest level since 2010, with $46 billion in loans written off in the first nine months of 2024—a 50% increase from the prior year.

Rising inflation and elevated interest rates have strained low-income households, whose savings rates have dropped to zero.

Total credit card debt surpassed $1 trillion in 2023, with Americans paying $170 billion in interest over the past year.

Delinquency rates remain high, signaling further financial stress, as hopes for significant interest rate cuts in 2025 dim.

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[–] Ensign_Crab 19 points 1 month ago

It wasn't a problem when people maxed out their cards just to afford groceries.

Now it's a problem.