The Federal Reserve Bank of New York reports a rise in credit card delinquencies, potentially linked to the resumption of student loan payments and financial strain from high inflation and interest rates. Delinquencies have increased among younger and lower-income households, with the average monthly student loan payment ranging from $200 to $299 per person. The resumption of student loan payments, combined with elevated living costs, is expected to deliver a financial shock to millions of Americans, as efforts to erase student loan debt have faced setbacks.
Americans' credit card debt has reached a record high of $1.13 trillion, with a $50 billion increase in the fourth quarter of 2023 alone. Total household debt rose to $17.5 trillion, and delinquencies on credit card payments are on the rise across all age groups, particularly among those aged 30-39. Additionally, auto loan balances have also increased, attributed in part to higher car prices following the pandemic.
Americans' total credit card debt hit a record high of $1.13 trillion at the end of 2023, with card balances increasing by 4.6% in the fourth quarter. Credit card delinquencies also rose, contributing to the overall household debt reaching $17.5 trillion. Factors such as higher living costs and more cardholders carrying over debt from month to month have led to increased financial stress, particularly among younger and lower-income households.
The Federal Reserve Bank of New York has reported that total household debt in the US has reached a new high of $14.56 trillion in the second quarter of 2020, driven by increases in mortgage, auto loan, and credit card debt. Despite a decrease in overall credit card balances, delinquency rates have increased, indicating financial stress for some households.
The Federal Reserve Bank of New York has reported that total household debt in the US has reached a new high of $14.56 trillion in the second quarter of 2020, driven by increases in mortgage, auto loan, and credit card debt. Despite a decrease in overall credit card balances, delinquency rates have increased, indicating financial stress for some households.
