{"id":11896,"date":"2025-01-06T01:37:20","date_gmt":"2025-01-06T01:37:20","guid":{"rendered":"https:\/\/fundinguno.com\/?p=11896"},"modified":"2025-01-06T01:37:21","modified_gmt":"2025-01-06T01:37:21","slug":"us-credit-card-defaults-soar-to-highest-level-in-14-years","status":"publish","type":"post","link":"https:\/\/fundinguno.com\/?p=11896","title":{"rendered":"US credit card defaults soar to highest level in 14 years"},"content":{"rendered":"<div><!----> <!----> <\/p>\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\"><\/div>\n<\/div>\n<\/div>\n<p>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&#8217; record-high consumer debt.<\/p>\n<p>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&#8217;s an increase of 50% from the first three quarters of 2023, and the highest since 2010.<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><picture><source media=\"(max-width: 767px)\" ><source media=\"(min-width: 768px) and (max-width: 1023px)\" ><source media=\"(min-width: 1024px) and (max-width: 1279px)\" ><source media=\"(min-width: 1280px)\" ><\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n<p>&#8220;High-income households are fine, but the bottom third of US consumers are tapped out,&#8221; Mark Zandi, head of Moody\u2019s Analytics, told FT. &#8220;Their savings rate right now is zero.&#8221;<\/p>\n<p><strong>AMERICA AS A COUNTRY AND INDIVIDUALS NEED TO GET HOLIDAY DEBT \u2018UNDER CONTROL,\u2019 JENNIFER SEY SAYS<\/strong><\/p>\n<p>Pointing to the findings, The Kobeissi Letter declared on X, &#8220;The credit card debt bubble is popping.&#8221;<\/p>\n<p>The New York Federal Reserve reported last month that Americans&#8217; 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.<\/p>\n<p><strong>FINANCIAL EXPERT SHARES YEAR-END MONEY MOVES TO TACKLE, AVOID HOLIDAY CREDIT CARD HANGOVER<\/strong><\/p>\n<p>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).<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><picture><source media=\"(max-width: 767px)\" ><source media=\"(min-width: 768px) and (max-width: 1023px)\" ><source media=\"(min-width: 1024px) and (max-width: 1279px)\" ><source media=\"(min-width: 1280px)\" ><img decoding=\"async\" src=\"https:\/\/fundinguno.com\/wp-content\/uploads\/2025\/01\/GettyImages-2159409420.jpg\"><\/source><\/source><\/source><\/source><\/picture><\/div>\n<\/p><\/div>\n<p>In a call discussing the report following its release, New York Fed researchers discussed the growth in debt balances across the board, the persistent and &#8220;concerning&#8221; growth in <u>auto loan<\/u> and credit card delinquencies, and how stresses and high delinquency rates are concentrated among younger borrowers.<\/p>\n<p>&#8220;We&#8217;ve seen notably elevated flows into delinquency, particularly for credit cards as well as auto loans during the past few years,&#8221; one researcher said. &#8220;This is something that we have been pointing to as a reason for concern \u2014 something to keep an eye on.&#8221;<\/p>\n<p><strong><u><\/u><\/strong><\/p>\n<p>They pointed to the rise in payments consumers are making on credit cards and auto loans, which is attributed partly <u>to inflation<\/u> and also because of higher interest rates.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.foxbusiness.com\/economy\/us-credit-card-defaults-soar-highest-level-14-years\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217; 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&#8217;s an increase of 50% from the first three quarters of 2023, and the highest since 2010. &#8220;High-income households are fine, but the bottom third of US consumers are tapped out,&#8221; Mark Zandi, head of Moody\u2019s Analytics, told<\/p>\n","protected":false},"author":1,"featured_media":542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[],"class_list":["post-11896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US credit card defaults soar to highest level in 14 years | FundingUno<\/title>\n<meta name=\"description\" content=\"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&#039;\" 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