The United States is experiencing a significant surge in credit card loan defaults, reaching a 14-year peak, according to the Financial Times. In the first nine months of 2024, lenders have written off an astonishing $46 billion in seriously delinquent loans, marking a staggering 50% increase from the previous year. Data from the Federal Deposit Insurance Corporation (FDIC) and BankRegData reveals that Capital One leads the way in credit card delinquencies, with $7.68 billion in defaulted loans, representing 5.36% of their total credit card loans. Other major banks like Citibank, Synchrony Bank, JPMorgan Chase, Discover Bank, and Bank of America are also experiencing significant delinquency rates. This alarming trend reflects the financial strain on consumers, exacerbated by high inflation and rising interest rates. Mark Zandi from Moody’s Analytics notes that while high-income households remain stable, the lower-income bracket is struggling, with many having a savings rate of zero.
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