Credit card companies continue racking up losses

According to Goldman Sachs, U.S. credit card companies have been experiencing accelerated losses at the fastest pace seen since the 2008 financial crisis.

Credit card losses sit at 3.63% at the moment, which Goldman Sachs said could bloom by 1.3% to reach 4.93%.

“We think delinquencies could continue to underperform seasonality through the middle of next year and don’t see losses peaking until late 2024 / early 2025 for most issuers,” said financial analyst Ryan Nash.

Nash went on to say that the growing credit card losses are unusual as they are speeding up outside of an economic downturn.