Credit card companies will continue to experience increased credit card losses through the next two years, according to Goldman Sachs.
The losses are already the fastest pace in decades and comes even while the economy is relatively stable.
The last time losses were this dramatic was in 2008 during the financial crisis, and Americans already owe a record high on credit cards. The bank predicted that losses will continue escalate until at least early 2025.
A Goldman Sachs analyst stated, “In our view, this cycle resembles the characteristics of what was experienced in the late 1990s and somewhat similar to the ’15 to ’19 cycle where losses increase following a period of strong loan growth and has seen similar pace of normalization thus far this cycle.”
Americans’ individual debt is in unchartered territory.