Daily Management Review

Goldman forecasts record growth rise in credit card delinquencies in USA


The percentage of credit card payments that are past due will increase at the fastest rate in 30 years in the United States, excluding the time of the financial crisis in 2008–2009, Goldman Sachs analysts forecast.

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In 2021, the proportion of credit cards whose owners failed to make timely payments hit a low point. It increased by 1.5 percentage points to 3.63 percent since then. According to Goldman analysts, the share will rise by a further 1.3 percentage points to 4.93 percent, with growth only slowing for the majority of issuers in late 2024 or early 2025.

Ryan Nash, the bank’s analyst, emphasized that the US economy is not in a recession, which makes the reported increase in credit card delinquencies unusual.

CNBC reports referring to data from the Federal Reserve Bank of New York, that the total amount of credit card debt held by Americans has reached a record high of more than $1 trillion.

source: cnbc.com