Credit card lenders wrote off $46 billion in seriously delinquent loan balances in the first nine months of 2024, marking a 50 percent increase from the same period in 2023 and reaching the highest level in 14 years, according to a report by the Financial Times, citing industry data compiled by BankRegData.
The swift increase in credit card write-offs is occurring in an environment where consumers—particularly those with limited financial flexibility—are contending with elevated interest rates and higher living expenses, the report found.
“High-income households are fine, but the bottom third of U.S. consumers are tapped out,” Mark Zandi, the head of Moody’s Analytics, told the outlet. Researchers and analysts note that spending power among vulnerable borrowers has diminished as inflation continues to erode disposable income….