what are credit card losses

Credit card losses refer to the amount of money that credit card companies lose when customers fail to pay their credit card debts. When a customer fails to repay the company for the money they have borrowed, debt grows through the accrual of interest and penalties. Credit card losses are currently rising at the fastest pace since the Great Financial Crisis of 2008. According to CNBC, credit card losses currently stand at 3.63%, up 1.5 percentage points from the bottom, and Goldman Sachs sees them rising another 1.3 percentage points to 4.93% . The rise in credit card losses can be attributed to a variety of factors, including the COVID-19 pandemic, which has caused financial hardship for many people.