Americans defaulted on their credit card loans at levels not seen since 2010, the Financial Times reported Monday.
Credit card lenders wrote off $46 billion in seriously delinquent loan balances in the first nine months of 2024, according to a Financial Times report citing industry figures from BankRegData. That is an increase of 50% from the same period in 2023 and the highest level in 14 years.
“High-income households are fine, but the bottom third of US consumers are tapped out,” Mark Zandi, the head of Moody’s Analytics, told Financial Times. “Their savings rate right now is zero.”
Americans’ credit card debt climbed to $1.17 trillion during the third quarter of 2024, according to a November report from the Federal Reserve Bank of New York. Credit card delinquencies remained high in the third quarter, with 3.5% of outstanding debt in some stage of delinquency,…
