Posted on 12/30/2024 7:59:44 AM PST by ChicagoConservative27
American credit card defaults have risen to the highest levels since the aftermath of the 2008 financial crisis as consumers grapple with years of high inflation.
Credit card lenders wrote off $46 billion in delinquent loan balances in the first three quarters of 2024, a 50 percent increase from the same period last year. These forms of write-offs are are viewed as a highly monitored measure of loan distress.
This is the highest level since 2010, according to industry data gathered by BankRegData.
Mark Zandi, the head of Moody’s Analytics, said, “High-income households are fine, but the bottom third of US consumers are tapped out. Their savings rate right now is zero.”
The Financial Times wrote that, although banks do not have data for the fourth quarter, there are worrying signs about the state of the American consumer:
The sharp rise in defaults is a sign of how consumers’ personal finances are becoming increasingly stretched after years of high inflation, and as the Federal Reserve has left borrowing costs at elevated levels.
Banks have yet to report their fourth-quarter numbers but the early signs are that more consumers are falling significantly behind on what they owe. Capital One, the US’s third-largest credit card lender, after JPMorgan Chase and Citigroup, recently said that as of November its annualised credit card write-off rate, which is the percentage of its overall loans that are marked as unrecoverable, hit 6.1 per cent, up from 5.2 per cent a year ago.
(Excerpt) Read more at breitbart.com ...
That stuff is done to buy votes and he doesn’t need them anymore.
Plus Wall Street and insurance firms invest in credit card debt and the last thing that they want is it to be forgiven.
The ‘2008 Financial Crisis’ is when Bush bailed out European banks on the US taxpayer dime.
This could be a good sign that the bank regulators are trying to keep the bankers honest.
SloJo’s policies were designed to increase the number of Americans dependent on government assistance.
Not a bug, a feature.
If I wanted to, I could spend $45K today, apply for three more cards and spend another $15K, then stiff them all. Instead, I pay off the three cards I use on a daily basis, and the rest suffer from intense loneliness.
Wrong.
The seeds of 2008 were planted when Cuomo was HUD Secretary under Clinton. The ponzi scheme of bundling mortgages and NIV was thanks, in part, to Reno suing banks.
Well this just can’t be possible! I saw a story the other day that said that Joe was handing Trump a BOOMING economy.
/s
yep, adverse bidenomics at work. No jobs, no problem, no income. A person should look at mortgage stats as well as financed car purchase payments.
We can talk about the egg crisis later.
You’re probably right. Run up the congresscritters’ debt and forgive it.
The problem with cc debt is about 50/50 the economy and people don’t know the difference between wants and needs.
How stupid of us. We paid our tuition in full at the beginning of each semester and did the same for our kids no matter how hard it was to scrape together. No mortgage. No cc debt. We pay our bills like responsible people. But we also haven’t bought so much as a pair of Wally World jeans in the way of clothes since 2009. We haven’t been on vacation since 2010 and haven’t been to the movies since 2011 but they make crap movies these days. Haven’t bought a new vehicle since 2007 but that may change any day since one or the other of our vehicles has been in the shop this year. Crunched the numbers for Sept.’s food expenses and eating normally with all but a couple days of no meat (we don’t live on rice and beans and we don’t, barf, eat out) was the usual $112 for the month per person.
12 homemade apple fritters = 1/3 the price of 1 at the bakery
10 homemade deli sandwiches using copy cat dough and garlic spread = the price of 1 at the window
25 cents for 8 oz fresh potato sliced and fried vs. $4 bag of chips
1 qt homemade Greek yogurt is 72 cents vs. $5+ at the grocery store
8x8” plain cheesecake made from that homemade yogurt is $1.25 or fancied up $1.50 vs wow! the price of even a slice of store bought cheesecake
12 homemade tortillas or Asian wraps = the price of one lonely single tortilla from a bag at the store
11x17” homemade pizza is $3 vs whatever the price is at the restaurant plus delivery plus tip
***The zinger*** is HEB had 1 oz McCormick vanilla extract for $5 during the holiday sales. 1 oz! Spend $20 buying a 1.5 liter of vodka and a dozen vanilla beans. Split open the beans and divide them and the vodka into recycled small glass condiment jars and let it do it’s thing. You just saved $230 and everyone gets a stocking stuffer next Christmas.
The entire Bush clan are evil RINOS.
.
In California; do they persue credit card debt if it is less than $1,000/day?
If so, then no wonder people just walk out of the store without paying.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.