It's gotten harder for people to pay off their credit cards.

From Marketplace, I'm Sabrina Banishore, in for David Bruncaccio.

Americans took on an additional $74 billion in credit card debt last year, according to Wallet Hub.

The good news is that is actually a smaller increase than we saw in 2023.

The bad news, credit card defaults are way up. Marketplace's

Matt Levin has more. A household is considered in default on a credit card when they're over 180 days

late on minimum payments. That's when collections typically kicks in. And in 2024, Americans defaulted

on $59 billion in credit card debt, a 34% jump from

2023. Chip Lupo is an analyst with Wallet Hub. Inflation is a huge factor because the cost of

everything has gotten so high. More and more people are turning to credit cards for their

everyday expenses. Higher interest rates are also making things worse.

Partly because of the Fed's rate hikes, Lupo says credit card APRs are averaging around 22 to 23% right now,

higher than normal.

You wind up paying more in interest than your actual balance.

High credit card balances are taking their toll on one demographic group in particular,

older adults.

Indira Venkod is senior vice president of research at AARP.

Nearly half of adults over the age of 50 with credit card debt are lacking the money

to cover basic expenses.

An AARP survey also found that more than a third of seniors with credit card debt are lacking the money to cover basic expenses.

An AARP survey also found that more than a third of seniors over 75 are carrying credit card debt. I'm Matt Levin for Marketplace.

Markets started off calm this morning but are now officially having another rough day,

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