"Rising Auto Loan and Credit Card Delinquencies Signal Financial Stress for Millennials, NY Fed Reports"
The New York Fed's Quarterly Report on Household Debt and Credit for the fourth quarter of 2023 reveals that household debt balances increased moderately across most loan types, with auto loan balances continuing to grow steadily. The report also highlights a rise in delinquency rates for auto loans and credit cards, particularly among Millennials and Baby Boomers, and in lower-income areas. The increase in car prices and average loan origination amounts, coupled with higher interest rates, may be contributing to the worsening performance of loans opened in 2022 and 2023.
