Troubling signs emerge as credit card debt hits record high

Yahoo! Finance ^ | 02/16/23 | Gabriella Cruz-Martinez

[millenial4freedom]

As credit card debt hit an all-time high — just shy of $1 trillion — in the final three months of 2022, delinquencies among borrowers accelerated.

Balances grew $61 billion in the fourth quarter from the previous one to $986 billion, the Federal Reserve Bank of New York found. That marked the largest quarterly increase and the highest total since the series began in 1999.

At the same time, the rate at which credit card holders missed payments and became more than 90 days behind was higher than before the pandemic, especially among younger borrowers, a potentially worrying sign when the student loan pause lifts later this year.

[Boogieman]

“Then again, it may be boomer parents and millenial kids...”

Most likely that. Most parents of Gen Xers were Silent Generation, and so most Gen Z parents are Gen X I suppose.

[moovova]

"I haz to pay it back?"

[minnesota_bound]

The credit card cards charge more in interest then loan sharks.

[Svartalfiar]

The “student loan pause” was a very unwise thing to do. All it does is extend the time to “pay the piper” so to speak. Also, it gives the beneficiaries the false sense that their income has increased. So they spend up to their level of income, as most people do, so now when loan payments resume, they are going to find themselves short.

We've been paying off the wife's the whole time they've had the pause/no-interest going. Wife was real excited when she heard we'd be getting back the $5-6M we paid during that, but I told her not to get her hopes up too high :p