"Rising Delinquencies and Record Debt: The Growing Financial Strain on American Households"

The New York Federal Reserve reported a more than 50% surge in credit card delinquencies in 2023, with total consumer debt reaching $17.5 trillion. Delinquencies also rose in mortgages, auto loans, and other categories, signaling increased financial stress, particularly among younger and lower-income households. Household debt increased by $212 billion in the quarter, with credit card debt jumping 14.5% from the same period in 2022. Higher interest rates, driven by the Federal Reserve's tightening cycle, likely played a role in the delinquency rates. Despite some forgiveness of student loan debt by President Joe Biden, the total student loan debt remained largely unchanged, while mortgage debt increased by 2.8% in 2023.