Overview

• 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.