The number of people with credit card defaults rose significantly in May.
Wired PR News – A significant increase in credit card defaults was seen in May. As reported by Reuters, the number reached record highs last month as consumers continue to experience financial strain. Charge-offs were stated to have risen as well. Walter Todd with Greenwood Capital Associates is quoted as stating of the credit industry, “Chargeoffs went up to record highs.”
As noted in the report, credit card losses are expected to reach over 10 percent by the year’s end. Macquarie Research analyst John Williams is quoted in the report as stating of the issue, “Until lenders show stabilization then trend-bucking improvement over a several-month period, we remain bearish on credit card lenders — and the U.S. consumer… We continue to believe that macro challenges and credit quality concerns will pressure U.S. card issuers over the next 12 months.”
Photo Credit: Wikipedia User Channel R