Credit card balances in the third quarter jumped 15% over the same period last year — the biggest annual increase in more than two decades, New York Fed researchers reported today.
during a period of decades-high inflation, as well as added pressure on younger borrowers and borrowers with lower income.Amid a still strong labor market with government assistance programs now largely gone, "it's clear" that debt trends are shifting back to previous rates, New York Fed researchers said.Credit card balances grew $38 billion from the second quarter, making up 11% of the overall increase in household debt .
Credit card holders between ages 30 and 59 have balances approaching fourth quarter 2019 levels, according to the report.Borrowers in the lowest income households have seen their balances surpass pre-pandemic levels as well. Meanwhile, delinquency rates, which have remained very low, are starting to climb among households with lower income.Credit cards are the most prevalent type of debt in the U.S. — and credit card balances represent a mix of past debt and new consumption.
New York Fed researchers note that they couldn't distinguish between borrowers who pay in full each month from those who roll over their balances.And the status of the White House's student loan forgiveness plan, which has been tied up in the courts. If it goes through, the researchers expect student loan delinquencies to be lower than they were pre-pandemic. If payments resume, younger borrowers may see greater credit pressures than older borrowers.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Premature Births Are at a 15-Year High, New Report SaysThe 2022 March of Dimes Report Card addresses stark racial disparities in maternal health and reveals that more than 1 in 10 babies were born prematurely last year. Learn more here.
Read more »
Razer Blade 15 review: 240Hz OLED for the win | Digital TrendsThe 240Hz OLED panel on the new Razer Blade 15 beings solid HDR gaming to laptops. It's the best in the line.
Read more »
See how far Pokémon Go creator Niantic’s AR gaming ambitions have comeNew hardware, new software, new AR experiences.
Read more »
STOCK MARKET NEWS: Futures rebound, New FTX CEO speaks out, Holmes sentencingMore Twitter workers flee. Western US cities to remove decorative grass. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Read more »
The new privacy 'token' that could stop credit report breachesExclusive: TransUnion is testing a new token-based technology to prevent sensitive customer information from being shared whenever a third party requests a credit report.
Read more »