The number of Americans who cannot pay their credit card debts is at its highest level in 14 years. This is reported by Financial Times, citing figures from BankRegData.
In total, credit card companies have written off debts of 46 billion dollars during the first nine months of the year, an increase of 50 percent compared to the previous year. Debts are written off when companies believe it is unlikely that they will be paid.
One explanation is that the high inflation of recent years and the savings that many built up during the pandemic have now been spent.
Primarily, it is low-income earners who cannot pay their credits.
