Credit Card Defaults Skyrocket as Americans Unable to Pay

Tuesday, December 31, 2024

Defaults on credit cards in the U.S. have spiked significantly in the last year, according to a new report.

Posted by lamplighter at 08:32 PM | 13 COMMENTS | permalink

US credit card defaults jump to highest level since 2010 https://www.ft.com/content/c755a34d-eb97-40d1-b780-ae2e2f0e7ad9

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-- Financial Times (@financialtimes.com) December 29, 2024 at 4:06 PM

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More from the article...

... Why It Matters

The numbers indicate that many Americans are struggling to pay off their credit card debt after years of high inflation.

High prices and economic concerns were a major reason that voters in November chose President-elect Donald Trump, but his threats to impose tariffs on imported goods could further raise prices for Americans and exacerbate their financial struggles.

What To Know

Credit card balances have soared in recent years, with the total amount U.S. consumers owed topping $1 trillion for the first time in 2023.

Americans now owe a record $1.17 trillion on their credit cards, according to a recent report on household debt from the Federal Reserve Bank of New York. ...

#1 | Posted by LampLighter at 2024-12-31 05:45 PM

... Several recent reports indicate Americans spent more on holiday purchases in 2024, but had to take on debt in order to do so.

Mastercard released its preliminary "Spending Pulse" report Thursday, which excludes car purchases. Mastercard found retail sales increased by 3.8% compared to last year, including sales from November through Christmas Eve.

In the meantime, LendingTree issued a report showing that 36% of Americans took on debt this holiday season. The average American who went into debt took on an average of $1,181. Also, of those who used debt for holiday purchases, 42% said they used credit that has an interest rate of 20% or higher.

The survey also showed that 60% said that they are only going to be making minimum payments, while 40% said that they are going to be paying that debt off over the course of five months or longer. ...

#2 | Posted by LampLighter at 2024-12-31 05:48 PM

Could never understand buying stuff I don't need with money I don't have.
Medical debt is another story.
I haven't paid an interest charge for a credit card in over 30 years.

#3 | Posted by mattm at 2024-12-31 06:53 PM

What else do you expect when people are told the "dream" is having endless stuff but then strip them of their ability to have "stuff" by offshoring their jobs, replacing them with cheaper foreign labor and/or robots/AI?

Current corporate mindsets want consumers able to consume but don't want to do their part in making sure it's a reality.

#4 | Posted by jpw at 2024-12-31 07:07 PM

@#4 ... strip them of their ability to have "stuff" by offshoring their jobs, replacing them with cheaper foreign labor and/or robots/AI? ...

I agree.

The corporate wealthy shareholders have demanded profit, even it is has meant moving jobs to other countries.

I have said as much in the past.

The wealthy looking to maximize their corporate profits at the detriment of American workers.

#5 | Posted by LampLighter at 2024-12-31 07:12 PM

@#3 ... Could never understand buying stuff I don't need with money I don't have.
Medical debt is another story. ..

Are the credit card companies taking a queue from the for-profit healthcare industry?

That is, imo, pouring debt upon the customers, then proceeding to put liens on houses, forcing people out of their houses, and then turning those properties over to private equity?

(I summarize)

#6 | Posted by LampLighter at 2024-12-31 09:15 PM

Well fiiiiiirst... they committed to an astronomical auto loan... because they "deserved it"... salesperson said so... the rest is just to makes ends meet.

#7 | Posted by RightisTrite at 2025-01-01 03:12 AM

Good ole Bidenomics

#8 | Posted by THEBULL at 2025-01-01 11:50 AM

These folks can follow the orange pedo's example by declaring multiple bankruptcies.

#9 | Posted by reinheitsgebot at 2025-01-01 11:54 AM

With Trump in the White House we can expect the watchdogs in the press to do their jobs.

#10 | Posted by visitor_ at 2025-01-01 01:31 PM

"Only I can fix it...." DJT

#11 | Posted by Yodagirl at 2025-01-01 01:49 PM

This kind of debt is what rips people's houses from them which they will end up renting back from some giant corporation in China or NYCity that bought it for peanuts on the dollar. Another nail in the coffin to the US middle class brought to you by people like Musk and that stupid Indian what's his name that seems to be like his shadow these days. The big shiny Guillotine is all they need and those like them.

#12 | Posted by Wildman62 at 2025-01-01 04:09 PM

Were told the economy was booming, we have record unemployment and wages are high..... What happened in the last few months?

#13 | Posted by lfthndthrds at 2025-01-01 06:47 PM

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