The Financial Times reported Monday that Americans are defaulting on their credit card loans to levels not seen since 2010.
Credit card lenders canceled $46 billion in seriously delinquent loan balances in the first nine months of 2024. According to In a Financial Times report citing industry statistics from BankRegData. This is a 50% increase compared to the same period in 2023 and the highest level in 14 years.
Mark Zandi, head of Moody’s Analytics, told the Financial Times: “High-income households are doing well, but the bottom third of American consumers are being exploited.” “Their current savings rate is zero.”
Americans’ credit card debt rose to $1.17 trillion in the third quarter of 2024. According to In the New York Fed’s November report. Credit card delinquencies remained high in the third quarter, with 3.5% of outstanding debt at some stage past due, according to the New York Fed.
According to the report, home loan balances reached $12.59 trillion at the end of September, while auto loan balances increased by $18 billion to $1.64 trillion. According to the New York Fed, household debt reached $17.94 trillion in the third quarter. (Related: ‘Fresh Air’: Small Business Optimism Soars After President Trump’s Victory, Survey Finds)
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Many Americans are suffering from soaring prices and high inflation under the Biden-Harris administration. Although inflation has slowed since peaking at around 9.1% in June 2022, interest rates remain high. The Consumer Price Index is a broad measure of the prices of everyday goods; rose The year-on-year comparison in November was 2.7%. 2.6% According to the Bureau of Labor Statistics (BLS), it was released in October.
Despite the fact that inflation remains stubborn In recent months, President Joe Biden has repeatedly said was popular his financial legacy. Some experts say that excessive government spending under the Biden-Harris administration is accelerating inflation. The national debt is $35.46 trillion As of Tuesday.
During his campaign, President-elect Donald Trump floated the idea of temporarily capping credit card interest rates at 10% so people could “recover” their debts, saying, “We have no choice but to do it.” ” he said. Give it a try, Business Insider reported. Sen. Bernie Sanders expressed support for the idea of credit card interest rates, calling it a “great idea.” post With X.
“During the recent campaign, Donald Trump proposed capping credit card interest rates at 10%,” Sanders said in the post. “That’s a great idea. Let’s see if he supports the bill I’m introducing for that purpose.”
The economy was the most important issue for voters in the 2024 presidential election. gallup public opinion poll A survey released on October 9th found that the economy is the most important issue for voters in the lead-up to the presidential election, with 52% of those surveyed saying a candidate’s position on the economy had a “very important” influence on their vote. I answered that I would give it.
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