(DCWatchdog.com) – Sounding alarms reminiscent of the 2008 financial crisis, there are rising U.S. credit card defaults, as banks write off a staggering $46 billion.
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American families face twisted priorities and financial strife, thanks to failed policies and ballooning interest rates at the end of the Biden administration.
Credit card defaults in the U.S. have surged, reaching their highest level since 2010.
In just the first nine months of 2024, lenders were forced to write off $46 billion in delinquent loans, marking a troubling 50% increase over 2023.
This staggering amount underscores the significant financial distress and the challenges Americans are facing.
Driving this crisis are persistent inflation and increased borrowing costs, which have severely squeezed the average American’s wallet.
Sadly, it’s the lowest income brackets suffering most, with their savings rate falling to zero.
Moody’s chief economist Mark Zandi lamented, “High-income households are fine, but the bottom third of U.S. consumers are tapped out. Their savings rate right now is zero.”
American families are struggling to make ends meet in an economy that’s leaving many behind.
The figures from Capital One reveal a disturbing trend, with their credit card write-off rate climbing to 6.1%.
Over 74.5% of consumers are carrying some card debt, which increases dramatically for those living paycheck to paycheck.
For many families, this relentless cycle of debt is creating a grim reality.
“Reported rejection rates for credit cards, mortgages, auto loans, credit card limit extension applications and mortgage loan refinance applications all rose in 2024,” said the New York Fed.
Meanwhile, as consumer spending power diminishes, it’s clear that American financial stability is endangered.
U.S. credit card debt remains on an upward trajectory, recently hitting $5.113 trillion in October alone.
This growing debt pile is troublesome for those attempting to piece their finances back together.
As credit access becomes increasingly difficult, rejection rates for loans have spiked, leaving consumers with fewer options to manage their burgeoning debt.
The aftermath of stimulus spending and unrelenting inflation has left many Americans hoping for relief, with no immediate solutions on the horizon.
⚠️US CREDIT CARD DEFAULTS ARE SKYROCKETING⚠️
US credit card write-offs in seriously delinquent loans SPIKED 50% Y/Y to $46 BILLION.
Credit card defaults have DOUBLED since 2022 and hit the highest level since 2010, a year after the FINANCIAL CRISIS.
The most financial pain has… pic.twitter.com/i39bk5lk92
— Global Markets Investor (@GlobalMktObserv) December 30, 2024
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