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When the economy is going well, people buy a lot on credit and keep current with their credit card debt. When the economy stinks, people still buy a lot on credit but fall behind in their payments. By that measurement, we're in a lot of trouble. The Federal Reserve Bank of Philadelphia published a study showing that the rate of credit card delinquencies — 30, 60, and 90 days past due — rose to a level not seen since 2012. And it gets worse. "Fourth quarter 2023 featured the worst card performance in the series," the report said. "All stages...

Delinquency rates among American credit card holders are at an all-time high, while at the same time a record number of “active accounts” have “a balance of over $2,000,” according to a Federal Reserve Bank of Philadelphia report. We’re more than three years into the Biden presidency, so we all know where the blame lies. More from Bloomberg: Almost 3.5% of card balances were at least 30 days past due as of the end of December, the Philadelphia Fed said. That’s the highest figure in the data series going back to 2012, and up by about 30 basis points from...

Strain disappeared on March 8 after being kicked out of Luke’s 32 Bridge Food + Drink in downtown Nashville while on a trip with his fraternity. University of Missouri student Riley Strain's body has been found in the Cumberland River Friday morning, the Metropolitan Nashville Police announced. "The body of Riley Strain was recovered from the Cumberland River in West Nashville this morning, approximately 8 miles from downtown," the department wrote on X. "No foul play-related trauma was observed. An autopsy is pending." Police received a call around 7:28 a.m. from a worker at a nearby business who discovered Strain's...

The body of missing University of Missouri student Riley Strain has been found in a Nashville river after he went missing leaving a country bar earlier this month, authorities said. “The body of Riley Strain was recovered from the Cumberland River in West Nashville this morning, approximately 8 miles from downtown,” the Metropolitan Nashville Police wrote on X. His body was found in the Cumberland River near 61st Avenue North around 7:30 a.m. Friday, news station WKRN reported. No foul play is suspected, but an autopsy has been scheduled, police said. Strain was visiting the Music City with his Delta...

The family of missing student Riley Strain says it has been shown unreleased surveillance video that captured him walking fast or “jogging” in the opposite direction of his hotel. Chris Whiteid, Strain’s stepfather, and Chris Dingman, a friend acting as the family spokesman, revealed that Metro Nashville Police on Sunday showed them the last known video of the University of Missouri student from the night of his disappearance. “We got to see him walking,” Whiteid told NewsNation in an interview that aired Thursday. “We got to see him kind of at a fast pace walk, almost a jog. And it...

Two TikTokers taking part in the search for missing college student Riley Strain — livestreaming their search efforts for followers — found his credit card near the Cumberland River in Nashville. Two TikTok users, @nobodyleftbehind13 and @annaclendening, were sharing their search as it unfolded live with followers when they stumbled across the missing Mizzou student’s credit card. “S—. I found his credit card,” one user can be heard saying in a video that was later shared to @rileylively’s account, Fox News Digital reported. Another user filming the search chimes in, “You found his credit card? We found his credit card....

During an interview with the Fox Business Network on Wednesday, Treasury Secretary Janet Yellen answered a question on record credit card spending by stating that we still have strong credit quality and delinquencies have gone up a small amount from a historically low level and while “particularly lower-income households are borrowing again on credit cards. I see that as a normalization, rather than a disturbing new trend.” Fox Business White House Correspondent Edward Lawrence asked, [relevant exchange begins around 4:05] “Last year, many economists predicted a recession this year. We haven’t seen it. It looks like we may not see...

Capital One announced on Monday it was acquiring a rival financial services company in a massive stock deal as Americans continue to be plagued with credit card debt, according to The New York Times. The McLean, Virginia-based bank announced it would acquire Discover Financial Services in a $35.3 billion all-stock transaction, The New York Times reported. The acquisition of Discover would give Capital One more market power due to Discover having a payments network of its own at the same time as credit card debt continues to mount for consumers, according to The Wall Street Journal. The acquisition could face...

A new law requiring New York businesses to clearly display the total cost of purchasing items with a credit card — including any surcharges — is in full swing. As of Sunday, businesses in the Empire State are required to disclose any additional credit card surcharges before a customer begins to check out. The businesses can either post the total price, inclusive of the credit card surcharges, or list the different prices for both card and cash payments for items. “As more New Yorkers use credit cards and EBT [electronic benefit transfer] products to purchase goods and services, pricing transparency...

* Collectively, Americans owe $1.13 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York. * Higher prices have largely caused consumers to spend down their savings and lean on credit cards to make ends meet. * Now, young adults, who are also burdened by high levels of student loan debt, are increasingly falling behind on the payments, the New York Fed found. Americans now owe a collective $1.13 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. This is...

Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of December, according to a New York Federal Reserve report published Tuesday. In the three-month period from October to December, total credit card debt surged to $1.13 trillion, an increase of $50 billion, or 4.6% from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003 and the ninth consecutive annual increase. There was also an uptick in borrowers who are struggling with credit card, student and...

Americans are piling on more credit card debt amidst persistent inflation and high interest rates, driving total debt to a new record of over $1.08 trillion, according to the New York Federal Reserve Bank’s Quarterly Report on Household Debt and Credit. Meanwhile, Fed Chair Powell downplays the likelihood of a real estate-led banking crisis but anticipates closures or mergers among smaller banks. The tightening monetary policy reflects the most restrictive measures since the 1970s and 1980s, with stricter loan standards observed across the board, especially in Commercial Real Estate loans.

A concerning trend emerges as 21% of Americans admit they would turn to credit cards to cover an emergency expense exceeding $1,000, planning to pay it off over time—an unsettling revelation from Bankrate. The resurgence of unpaid credit card balances surpassing 2019 levels paints a grim picture of financial strain, with 60% of Americans navigating the precarious terrain of living paycheck to paycheck. The average credit card debt hovering around $6,000 underscores the mounting financial pressure on households, raising alarms about the sustainability of current economic conditions. Recent job cuts in prominent companies such as Wayfair, Hasbro, Spotify, and Twitch...

In the ever-evolving landscape of financial dynamics, a disconcerting narrative unfolds. Credit card delinquency rates have surpassed pre-pandemic levels, marking a troubling turn in the economic trajectory. The report from the Federal Reserve Bank of Philadelphia paints a stark picture of the challenges faced by consumers, revealing alarming statistics that demand our attention. Delving into the heart of the matter, the report reveals that credit card delinquency rates have surpassed pre-pandemic levels. A staggering 3.2% of card balances were at least 30 days past due as of September, marking the highest figure in over a decade. This surge, up by...

Amidst growing concerns, the United States is witnessing an alarming surge in credit card debt, with 56 million Americans grappling with credit card balances for over a year. The Federal Reserve Bank of New York’s quarterly report reveals an unprecedented milestone, as total card balances reach a staggering $1.08 trillion, reflecting a 40% surge in the last two years.

In the intricate web of economic indicators, the perils of relying on averages come to light, exposing the stark reality of worsening inequality. Beyond the glossy surface of seemingly prosperous financial landscapes, a deeper dive into individual income data reveals a challenging narrative for the bottom 80 percent. Bank of America’s assertion that credit card delinquencies are on the rise is a somber note in the symphony of economic statistics. While, on average, households may boast flush liquid assets, the truth lies in the nuanced story of individual struggles within the lower income brackets. This narrative is intimately tied to...

fredblog.stlouisfed.org/2023/12/three-measures-of-us-credit-card-debt/#:~:text=In%202023%2C%20outstanding%20credit%20card,for%20consumer%20spending%20going%20forward. From a disposable income standpoint the Fed data agrees that the consumer is better able to service their debt now than they ever have. That peaked during the stimmie checks but that gap has closed from -25% to -5% in the past 2 years. Which is not a promising trend. Adjusting for inflation the debt is equal to pre Covid but 20% higher than post GFC.

As Americans deal with stubborn inflation, they’re increasingly turning to credit cards to make ends meet. In fact, credit card originations rose 0.16% month-to-month in August, according to the latest data from VantageScore. And the average credit card balance jumped 11.1% year-over-year to reach $6,082. "In August, lenders tightened access to credit across most products and consumers continued to remain cautious about adding to their debt levels," Susan Fahy, the executive vice president and chief digital officer at VantageScore, said in a statement. "The data shows that over the summer many U.S. consumers began to feel the strain of rising...

The US is experencing a slow down. The massive Federal government and Federal Reserve Covid stimulus has worn out and we are left with a sagging jobs report and soaring credit card delinquencies. After ADP’s reports printed almost perfectly in line with BLS last month (+177k vs +187k), all eyes are on today’s print, which was expected to decline to +150k. Instead it plunged to just +89k – that is the lowest jobs addition since Jan 2021. Credit Card Delinquency rates at small banks have reached 7.51%, the highest level ever recorded.

Goldman Sachs predicts credit card losses will continue to climb through the end of 2024/early 2025. What is unusual is that the losses are accelerating outside of an economic downturn, the firm said. Credit card losses currently stand at 3.63%, up 1.5 percentage points from the bottom. Credit card companies are racking up losses at the fastest pace in almost 30 years, outside of the Great Financial Crisis, according to Goldman Sachs. Credit card losses bottomed in September 2021, and while initial increases were likely reversals from stimulus, they have been rapidly rising since the first quarter of 2022. Since...