Charge-off rate hits seven-year high
US credit card bad debt hit a seven-year high in Q1 in a sign that low unemployment and solid growth isn’t working for everyone.
Bloomberg highlights the trend today and especially notes the rising charge-offs among 18-29 year olds who are struggling with student debt as well. The rate is up to 8.1% from 5.4% in 2013. That’s still far below pre-crisis levels but it suggests there isn’t as much safety in the economy as low unemployment suggests.