Experts warn of impending crisis as credit card defaults surge
(MENAFN) Specialists are raising alarms after a recent report revealed a sharp rise in credit card loan defaults, suggesting that Americans’ record-breaking consumer debt is on the verge of crisis.
According to a report from a news agency based on data analyzed by BankRegData, lenders wrote off over USD46 billion in seriously overdue credit card loans in the first nine months of 2024. This marks a 50 percent increase from the same period in 2023, the highest level since 2010. Mark Zandi, the chief economist at Moody’s Analytics, commented to the FT, "High-income households are fine, but the bottom third of US consumers are tapped out. Their savings rate right now is zero."
The Kobeissi Letter also pointed out the alarming trends on X, declaring, "The credit card debt bubble is popping."
Additionally, the New York Federal Reserve reported last month that credit card debt among Americans reached a new record high of USD1.17 trillion in the third quarter of 2024, the highest recorded level since data tracking began in 2003.
MENAFN02012025000045016755ID1109049007
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.