U.S. Credit Card Defaults Reach Highest Level Since 2008

A 50% surge in defaults highlights financial strain on lower-income households as inflation and high interest rates persist.

Credit card lenders wrote off $46 billion in delinquent debt during the first nine months of 2024, marking a 50% increase from 2023 and the highest level since 2010.
Americans now owe a record $1.17 trillion in credit card debt, with $170 billion paid in interest over the past year alone, according to Federal Reserve data.
Lower-income households are particularly affected, with experts noting that the bottom third of U.S. consumers have exhausted their savings entirely.
The Federal Reserve's limited plans for rate cuts in 2025 may prolong financial pressures, keeping borrowing costs high for consumers.
Rising delinquencies in auto loans and credit cards, especially among younger borrowers, signal broader financial distress despite steady income growth in some areas.