Credit card delinquencies surge, almost 1 in 5 users maxed out: Research

The Hill ^ | 05/15/2024 | ARIS FOLLEY

[ChicagoConservative27]

Credit card delinquencies are on the rise, as research from the New York Federal Reserve shows nearly a fifth of borrowers are “maxed-out.”

According the new report, issued by the bank’s Center for Microeconomic Data, household debt rose by 1.1 percent, or $184 billion, in the first quarter of the year, bringing the total to $17.69 trillion.

“In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency continued to rise across all age groups,” Joelle Scally, regional economic principal within the household and public policy research division at the bank, said in a statement.

“An increasing number of borrowers missed credit card payments, revealing worsening financial distress among some households,” Scally added.

[EVO X]

Just got letter from Citi that interest has been raised on my card to almost 30%.

Interesting. I have a rewards card with them. It was 15% until inflation hit and then was raised to 25% at some point. I just got a letter from them offering a teaser rate of 10% for a year. LOL.