Consumers are ‘tapped out’ after years of high inflation and as pandemic-era savings have evaporated

Summary

US credit card defaults have surged to their highest level since 2010, with $46 billion in loans written off in the first nine months of 2024—a 50% increase from the prior year.

Rising inflation and elevated interest rates have strained low-income households, whose savings rates have dropped to zero.

Total credit card debt surpassed $1 trillion in 2023, with Americans paying $170 billion in interest over the past year.

Delinquency rates remain high, signaling further financial stress, as hopes for significant interest rate cuts in 2025 dim.

  • sunzu2@thebrainbin.org
    8·
    11 days ago

    as hopes for significant interest rate cuts in 2025 dim.

    Corporate propaganda spotted…

    Credit card Interest rates have very weak correlation to the feds benchmarks.

    And they are always 29.99 if you default haha

    • AwkwardLookMonkeyPuppet@lemmy.worldEnglish
      4·
      11 days ago

      Most of them are that anyways outside of promotional periods. I considered the Costco Visa which is supposed to be for people with very good credit, and the rate is astronomical. Nah!