"The party is long over for the bottom third of US consumers, as maxed-out credit cards and depleted personal savings have pushed credit card loan defaults to their highest level since the 2008 financial crisis.Financial Times cited new data from BankRegData revealing that credit card companies wrote off $46 billion in "seriously delinquent loan" balances in the first nine months of the year—an alarming 50% increase from the same period last year and the highest level in 14 years.
....The head of Moody's Analytics, Mark Zandi, noted, "High-income households are fine, but the bottom third of US consumers are tapped out," adding, "Their savings rate right now is zero." This collapse in personal savings, combined with insurmountable credit card debt, largely explains why the bottom third of Americans are not only living paycheck to paycheck but also have financially committed suicide with the explosive use of toxic Buy Now, Pay Later services."
