US credit card defaults soar to highest in 14 years [Video]

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’ 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’s an increase of 50% from the first three quarters of 2023, and the highest since 2010.

“High-income households are fine, but the bottom third of US consumers are tapped out,” Mark Zandi, head of Moody’s Analytics, told FT. “Their savings rate right now is zero.”

AMERICA AS A COUNTRY AND INDIVIDUALS NEED TO GET HOLIDAY DEBT ‘UNDER CONTROL,’ JENNIFER SEY SAYS

Pointing to the findings, The Kobeissi Letter declared on X, “The credit card debt bubble is popping.”

The New York Federal Reservereported last month that Americans’ credit card debt hit another record …