Credit Card Defaults Surpass 2008 Crisis Levels, US Consumer Debt Hits $17 Trillion.

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The surge in credit card defaults, surpassing 2008 Crisis levels, underscores a concerning financial landscape. Historical savings trends have reversed, contributing to over $1 trillion in credit card debt—a twofold increase in a decade. US consumer debt hit a staggering $17 trillion in 2023, reminiscent of pre-2008 conditions. Despite a relative decrease in mortgage debt, the housing market faces challenges, with the affordability index at its lowest since the 1980s. Home prices doubling since 2012, coupled with 20-year-high mortgage rates, make homeownership increasingly unattainable. Depleted pandemic savings and a significant drop in the savings rate compound the issue. While debt payments relative to income remain low, the intricate web of rising debt, falling savings, and housing struggles paints a worrying economic portrait, challenging the optimism held by some economists.

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