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·
    11 days ago

    Well, that’s never a good sign for the economy. Even worse, we have an incoming administration that just doesn’t give a shit, even if they were competent to do something about it, which they’re not.