📉 Credit Card Defaults Surge to Record Levels
The chart illustrates a concerning trend in credit card delinquency rates, particularly among banks outside the top 100 in asset size. As of Q1 2024, defaults have reached **record levels** surpassing those seen during the 2008 financial crisis.
Key Points:
- Delinquency rates are approaching 8%, a critical threshold.
- This sharp increase outpaces the rise observed during the 2000 dot-com bust and the 2008 recession.
- The economic implications are significant, signaling financial strain on consumers and potential instability in the banking sector.
With the economy showing signs of stress, these rising default rates could foreshadow broader economic challenges ahead.
Stay vigilant and informed.
