the staff of the Ridgewood blog
Ridgewood NJ, according to a recent report on household debt by the Federal Reserve Bank of New York, Americans collectively owe a staggering $1.13 trillion on their credit cards. This figure saw a notable increase of $50 billion, or approximately 5%, in the fourth quarter of 2023. Alarmingly, credit card delinquency rates also witnessed a surge, especially among younger millennials aged between 30 and 39, who are grappling with substantial student loan debt burdens.
In 2023, credit card delinquencies experienced a remarkable uptick of over 50%, coinciding with a surge in total consumer debt to $17.5 trillion, as reported by the New York Federal Reserve. Debt that escalated into “serious delinquency,” defined as being 90 days or more past due, witnessed a significant rise across various categories throughout the year, with credit cards being the most affected. The data revealed that credit card debt transitioning into serious delinquency reached 6.4% in the fourth quarter, marking a substantial 59% increase from just over 4% at the close of 2022. This quarterly increase, when annualized, amounted to approximately 8.5%, according to New York Fed researchers.
Delinquencies also experienced an uptick in mortgages, auto loans, and other debt categories, though student loan delinquencies saw a decrease, as did home equity lines of credit. Overall, the proportion of debt that was 90 days or more past due rose to 1.42%, up from slightly over 1% at the end of 2022.
Wilbert van der Klaauw, economic research advisor at the New York Fed, highlighted that the rise in credit card and auto loan delinquencies surpassing pre-pandemic levels suggests heightened financial strain, particularly among younger and lower-income households.
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No doubt the current administration will find a way to bail out many of these poor people who have surely been the victims of greedy banks!
…only certain people. You need to have the right characteristics.
Sure they are all victims for spending more than they can afford
It’s incredible how on election year, all of a sudden the economy is doing “great” , gas prices are down, stock market close to an unheard 40000. I wonder what the start of 2025 will be like.