Defaults on U.S. Credit card loans have surged to their highest level since the 2008 financial crisis, reflecting growing financial strain.
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00:00Defaults on U.S. credit card loans have surged to their highest level since the 2008 financial
00:05crisis, reflecting growing financial strain among lower-income consumers.
00:10In the first nine months of 2024, lenders wrote off $46 billion in seriously delinquent
00:17credit card balances, a 50 percent increase from the previous year.
00:22With inflation and high interest rates from the Federal Reserve, many Americans, especially
00:27those in the bottom third of income earners, are struggling to manage rising debt.
00:33Capital One reported a rise in its credit card write-off rate, now at 6.1 percent, even
00:38with nearly $60 billion in debt already written off, $37 billion in overdue balances remain.
00:45Experts warn that the delinquencies signal more financial challenges ahead.