US credit card defaults soar to highest level in 14 years
foxbusiness.comRamsey Solutions personality Jade Warshaw breaks down the latest economic data that shows consumers credit card debt is piling up amid a jump in spending.
Experts are sounding the alarm over a new report indicating credit card loan defaults soared this year, warning the dam is about to break on Americans' record-high consumer debt.
During the first nine months of 2024, lenders wrote off more than $46 billion in seriously delinquent credit card loans, according to a report from the Financial Times citing data analyzed by BankRegData. That's an increase of 50% from the first three quarters of 2023, and the highest since 2010.
A woman holds credit cards. (iStock / iStock)
«High-income households are fine, but the bottom third of US consumers are tapped out,» Mark Zandi, head of Moody’s Analytics, told FT. «Their savings rate right now is zero.»
AMERICA AS A COUNTRY AND INDIVIDUALS NEED TO GET HOLIDAY DEBT ‘UNDER CONTROL,’ JENNIFER SEY SAYS
Pointing to the findings, The Kobeissi Letter declared on X, «The credit card debt bubble is popping.»
The New York Federal Reserve reported last month that Americans' credit card debt hit another record high in September, climbing to $1.17 trillion during the third quarter and marking the highest level on record in Fed data dating back to 2003.
FINANCIAL EXPERT SHARES YEAR-END MONEY MOVES TO TACKLE, AVOID HOLIDAY CREDIT CARD HANGOVER
The report showed total household debt also climbed to a new high of $17.94 trillion, along with balances on mortgages ($12.59 trillion), auto loans ($1.64 trillion) and student loan balances ($1.61 trillion).
Credit card loan defaults soared 50% in the first three quarters of 2024 compared to the same time frame last year, sparking a warning that «the
Read more on foxbusiness.com
