"Record High Delinquencies Signal Mounting Financial Stress for American Households"

1 min read
Source: Fox Business
"Record High Delinquencies Signal Mounting Financial Stress for American Households"
Photo: Fox Business
TL;DR

Credit card debt in the US reached a new high of $1.13 trillion at the end of 2023, with an increase of $50 billion from the previous quarter, according to a New York Federal Reserve report. Delinquencies in credit card, student, and auto loan payments are on the rise, particularly among younger and lower-income households. The average credit card annual percentage rate hit a record high of 20.72%, potentially leading to increased financial strain for consumers. Total household debt has reached $17.5 trillion, with auto loan and mortgage balances also contributing to the uptick, amid the Federal Reserve's aggressive interest rate-hike campaign to combat inflation.

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