Credit Card Losses Surge to Fastest Rate Since 2008 Recession

Credit card losses have climbed to 3.63%, the fastest rate since the 2008 recession, and are expected to keep rising to nearly 5% by late 2024/early 2025 according to Goldman Sachs.
The rise in losses is unusual outside of a recession according to analysts.
Credit card debt recently reached record highs, with Americans owing over $1 trillion in Q2 2022.
Loan growth is up 22% year-over-year, reversing a -13% decline last year.
Goldman Sachs projects the highest losses for Capital One and Discover, with increases for Synchrony and AmEx expected through 2025.

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Posted 9/22/2023, 9:07:19 PM