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.

  • AwkwardLookMonkeyPuppet@lemmy.worldEnglish
    4·
    10 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!