Credit Card Net Charge-Offs Are Rising. Here's Why Banks Aren't Too Concerned.
The Federal Reserve recently ended its most aggressive interest rate-hiking campaign in four decades. Many expected rising interest rates to thrust the U.S. economy into recession quickly, but consumers showed a robustness that surprised many.
Over the past few years, consumers have spent much of their excess savings and borrowed more. Last year, consumer credit card debt ended 2024 at $1.13 trillion amid record-high credit card interest rates.
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