Credit-card losses at U.S. banks are outpacing auto and home loans at a rate not seen in at least a decade, Bloomberg News reported. For now, there’s no cause for panic as the strong U.S. economy and low unemployment means most consumers are able to stay current on debt payments. Additionally, new foreclosures and bankruptcies fell to the lowest level in at least 15 years in 2018. Yet the uptick in card losses is unmistakable. Credit-reporting company Experian Plc said some of the blame goes to banks offering credit to riskier borrowers, and the Federal Reserve has noted a spike in late payments by the elderly. The four largest U.S. banks had almost $4 billion in charge-offs from credit cards last quarter, and just $656 million from all other consumer lending. That’s the biggest gap since at least 2009. Card charge-offs now make up more than 80 percent of total consumer credit costs, up from 67 percent three years ago.
