Quarterly financial reports from major U.S. banks like JPMorgan Chase, Bank of America, or Citigroup

U.S. Credit Card Defaults Hit $46 Billion, Highest Level Since 2010, With 50% Increase in 14 Years

Dec 30, 2024, 03:59 AM

U.S. credit card defaults have surged to their highest level since 2010, reflecting the financial strain on lower-income consumers amid ongoing inflationary pressures. According to reports, defaults on credit card loans have reached levels not seen since the aftermath of the 2008 financial crisis. In the first nine months of 2024, credit card lenders wrote off $46 billion in seriously delinquent loan balances, marking a 50% increase from the same period in 2023 and the highest level in 14 years. Analysts indicate that while high-income households remain stable, the bottom third of U.S. consumers are facing severe financial challenges, with their savings rate currently at zero. This trend raises concerns about the overall health of the consumer economy as debts from previous refinancing at low rates during the COVID-19 pandemic begin to come due.