American Credit Card Loan Defaults: What To Know

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A report published by Fox in early Jan. detailed how credit card loan defaults hit the highest rates in 14 years in 2024.
Lenders wrote off more than $46 billion in “seriously delinquent credit card loans in the first three quarters of 2024,” a 50% increase from the same time period the year prior, and the highest since 2010, according to the report. (RELATED: Trump Wants Religious Revival In America)
“Although inflation is slowing and wages are starting to rise, inflation is still squeezing people’s budgets,” Mary Eschelbach Hansen, a professor of economics at the American University in Washington, D.C., told MarketWatch in 2023 when the credit card debt crisis started to garner more public media attention.
Household debt climbed to new highs of $17.94 trillion, with mortgages at $12.59 trillion, auto loans at $1.64 trillion and student loan balances reaching $1.61 trillion. The crisis is likely going to hit the bottom third of U.S. consumers, as high-income households are “fine,” according to Moody Analytics’ Mark Zandi.
What Will The Economy Do In 2025?
We’ve just about staved off a recession in 2023 and 2024. Now it looks like we should be heading into a year of economic expansion in 2025, according to experts who spoke to Nasdaq. “Recession fears have diminished, inflation is trending back toward 2%, and the labor market has rebalanced but remains strong,” Goldman Sachs chief U.S. economist David Mericle said in Nov., adding that the Republican plan for more tariffs, tighter immigration policies and extension of tax cuts should see GDP rise by 2.5%.
There are deep concerns about financial distress for households across the U.S. in 2025, but the level of debt doesn’t necessarily spell disaster for the entire financial system. (POPULAR POST: Ravens Head Coach Reads Luke 1:46-47 To Press)
Get Involved In Shaping The Future
We just had an election where a lot of people lost their jobs, and a lot of new people are coming in to work for you, the American people. These elected officials don’t get to start their job until January 20th, 2025, so what do we do with this time until then?
Yes, Million Voices helps you with voter guides. Yes, we send letters from YOU directly to your elected officials because it’s the only way to guarantee they’ll listen to you. Yes, we publish data, articles, text messages, and help bridge the gap between education and civic action. All of these actions and more allow you to be the hero of our American story. And you are united in your heroism like never before!
Our goal is to move through this political transition from the Biden administration to the incoming Trump administration by educating you on the key issues you can take action on outside of election season. Once you know what’s going on across the local, state, and national landscape, we’ll tell your leaders what you want to happen. This is how we get your elected officials to keep working for you once they’ve earned your vote.
Join us in our mission to advocate for religious freedom, support fair and secure elections, and uphold the values that this great nation was built upon. Tell us what you want from the next four years, and we will fight to make it a reality … again!
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