this post was submitted on 29 Dec 2024
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Economics

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US credit card defaults jump to highest level since 2010 (www.ft.com)
submitted 2 weeks 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.

top 11 comments
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[–] PP_BOY_ 26 points 2 weeks ago (2 children)

... and now we don't have Obama to help. God save us, because our politicians certainly won't

[–] Anticorp 2 points 2 weeks ago (1 children)

Thanks Obama!

[–] [email protected] 2 points 2 weeks ago

ol' reliable haha

[–] [email protected] 1 points 2 weeks ago

Oba ma helped?

[–] Ensign_Crab 19 points 2 weeks ago

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

Now it's a problem.

[–] [email protected] 9 points 2 weeks ago

curiously 2010 was the last time I was unemployed for as long as I have been recently.

[–] [email protected] 8 points 2 weeks ago (1 children)

as hopes for significant interest rate cuts in 2025 dim.

Corporate propaganda spotted...

Credit card Interest rates have very weak correlation to the feds benchmarks.

And they are always 29.99 if you default haha

[–] Anticorp 4 points 2 weeks ago

Most of them are that anyways outside of promotional periods. I considered the Costco Visa which is supposed to be for people with very good credit, and the rate is astronomical. Nah!

[–] Anticorp 4 points 2 weeks ago

Well, that's never a good sign for the economy. Even worse, we have an incoming administration that just doesn't give a shit, even if they were competent to do something about it, which they're not.

[–] [email protected] 2 points 2 weeks ago

Paywall-free version: https://archive.is/F3obn

[–] moistclump 1 points 2 weeks ago

I couldn’t access the article without signing up. Mobile thing?