Tags: credit card | balances | delinquencies | household | debt

One-Third of Credit Card Payments Delinquent

One-Third of Credit Card Payments Delinquent
(Dreamstime)

By    |   Thursday, 16 May 2024 08:01 AM EDT

Roughly one-third of credit card holders were delinquent on their payments in 2023, up from 25% in 2019, data from the New York Federal Reserve shows.

Eighteen percent maxed out their credit cards in the first quarter of 2024, tapping into 90% or more of their available credit. However, 50% had used less than 20% of their available credit.

Younger borrowers and those in low-income areas were the most likely to max out their credit cards, the New York Fed said.

Total household debt in the first quarter rose by $184 billion, or 1.1%, to $17.69 trillion.

“In the first quarter of 2024, serious delinquency rates on credit cards and auto loans continued to rise across all age groups,” said Joelle Scally, regional economic principal with the New York Fed. “An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households.”

Annualized, in the first quarter of 2024, 8.9% of credit card balances and 7.9% auto loans became delinquent. However, delinquency rates for mortgages ticked up by only 0.3 percentage points in the quarter and remain low by historic standards.

Balances on home equity lines of credit (HELOC) loans increased by $16 billion, the eighth consecutive quarterly increase since the first quarter of 2022, to a total of $376 billion.

Credit card balances decreased by $14 billion to $1.12 trillion.

Auto loan balances increased by $9 billion to $1.62 trillion, continuing the upward trajectory begun in 2020.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Roughly one-third of credit card holders were delinquent on their payments in 2023, up from 25% in 2019, data from the New York Federal Reserve shows.
credit card, balances, delinquencies, household, debt
243
2024-01-16
Thursday, 16 May 2024 08:01 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved