Credit card defaults jump to highest level since 2010: Report

[Craig]

THE AVERAGE AMERICAN HAS ABOUT $6300 IN CREDIT CARD DEBT ACCORDING TO THE CREDIT RATING AGENCY TRANSUNION, IN ITS MOST RECENT REPORT.
AND NOW COME JARRING REPORTS THAT CREDIT CARD **DEFAULTS** ARE RISING AS FAMILY BUDGETS CANNOT KEEP UP WITH EXPENSES AND THE COST OF LIVING.
ACCORDING TO THE FINANCIAL TIMES, DURING THE FIRST NINE MONTHS OF 2024, LENDERS WERE FORCED TO WRITE OFF $46 BILLION IN DELINQUENT CREDIT CARD BALANCES, A 50% JUMP FROM 2023 AND THE HIGHEST RATE SINCE 2010.
MAKING MATTERS WORSE, ACCORDING TO MOODY’S ANALYTICS, IS THAT PEOPLE WHO EARN AT THE BOTTOM THIRD OF THE INCOME LADDER ARE TAPPED OUT AND NOW HAVE ZERO SAVINGS.
THE NEW YORK FEDERAL RESERVE REPORTS THAT CREDIT CARD DEBT
IN SEPTEMBER, REACHED $1.17 TRILLION-DOLLARS, THE HIGHEST LEVEL IN FED DATA KEEPING. HOUSEHOLD DEBT, INCLUDING MORTGAGES, CAR LOANS AND STUDENT LOANS, REACHED CLOSE TO $18 TRILLION, ANOTHER RECORD. ANALYSTS SAY SOME OF THAT IS DUE TO INFLATION AND HIGHER INTEREST RATES.
AND AS JANUARY ROLLS IN, SO DO THE HOLIDAY SPENDING BILLS.
ACCORDING TO LENDING TREE, MORE THAN ONE-THIRD OF AMERICANS
TOOK ON ADDITIONAL DEBT THIS HOLIDAY SEASON, RACKING UP AN AVERAGE OF $1181 IN CREDIT CARD SPENDING. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS APP