A brand new Federal Reserve Financial institution report has revealed bank card money owed amongst U.S. households have reached a file excessive of $1.13 trillion.
Bankrate’s analyst Ted Rossman reported increased rates of interest and ongoing inflation have led many People to battle to pay down their bank card balances.
Rossman acknowledged that extra individuals are carrying debt for longer intervals and shared “49% of credit score cardholders carry debt from month to month, up from 39% in 2021.”
The brand new Fed report additionally revealed bank card delinquencies have surged 50% up to now 12 months alone.
BREAKING: Bank card debt delinquency charges surged greater than 50% in 2023 to their highest degree since 2008, in accordance with the NY Fed.
Final quarter alone, whole bank card debt within the US jumped $50 billion to a file $1.13 trillion.
Auto mortgage delinquency charges additionally surged… pic.twitter.com/hfLiQvjxZ5
— The Kobeissi Letter (@KobeissiLetter) February 6, 2024
Per CBS:
U.S. households are carrying a file quantity of bank card debt, in accordance with a brand new Federal Reserve Financial institution of New York report launched Tuesday. The financial institution stated the information signifies monetary misery is on the rise, significantly amongst youthful and lower-income People.
Whole family debt grew by $212 billion, rising to $17.5 trillion within the fourth quarter of 2023, the Fed’s quarterly report on family debt and credit score exhibits.
Bank card balances rose by $50 billion to hit a file $1.13 trillion. Inflation and better rates of interest are contributing to rising bank card debt, leading to extra People struggling to pay down their bank card balances, in accordance with Bankrate’s senior business analyst Ted Rossman.
“We’re seeing extra folks carrying extra debt for longer intervals of time,” Rossman stated in an emailed assertion. “For instance, 49% of credit score cardholders carry debt from month to month, up from 39% in 2021.”
Right here was the Biden admin’s response to the brand new report:
.@FoxBusiness’s @EdwardLawrence: “The New York Federal Reserve simply launched a report at the moment saying that People have $1.13 trillion in bank card debt, which is now one other file. Is there an affordability disaster? ”
KJP: “So, look, what we have now been seeing, as you realize, from… pic.twitter.com/sopDQdIZDD
— Curtis Houck (@CurtisHouck) February 7, 2024
