The Federal Reserve reported a $228 billion growth in total household debt balances in the third quarter, with credit card and student loan debts seeing significant increases. Newly delinquent credit card holders rose to 2%, marking a doubling in the rate recorded in the first quarter of 2021. Credit card balances grew by $48 billion, marking the eighth consecutive year-over-year increase. Subprime auto-loan delinquencies are surging, raising concerns about the high amount issued. The $154 billion nominal year-over-year increase in credit card balances in the third quarter is the largest since 1999. The share of newly delinquent credit card users exceeded the pre-pandemic average. Housing defaults are increasing rapidly, likely to rise further with high interest rates. The New York Fed's latest report showed that Americans seriously late in paying their credit card balances rose to nearly 6% last quarter. The resumption of federal student loan payments is expected to cause a spike in delinquencies on household credit, including cards and personal loans. Credit card delinquencies are rising quickly for those with auto and student loans, according to the Fed.
Credit card delinquencies are rising particularly quickly for those with auto and student loans, per the Fed: https://t.co/p266xFzuJs
The resumption of federal student loan payments will likely cause a spike in delinquencies on all kinds of household credit, including cards and personal loans, according to new analysis https://t.co/EBIgrEMO3l
This is a MAJOR concern for the housing market Housing defaults are increasing rapidly And is likely to rise further with such high interest rates https://t.co/uD7fUpcDpu
Americans who were seriously late in paying their credit card balances – by at least 90 days – rose to nearly 6% the last quarter, according to the New York Fed's latest Household Debt and Credit report.
The share of newly delinquent credit card users rose in the third quarter and exceeds the pre-pandemic average, per the Fed.
In the third quarter, the $154 billion nominal year-over-year increase in credit card balances marks the largest such increase since 1999, per Liberty Street Economics.
TROUBLE AHEAD? Subprime auto-loan delinquency surging and the amount issued is alarmingly high! https://t.co/J6KEBLD83k
Credit card balances grew $48 billion this quarter and marked the eighth quarter of consecutive year-over year increases, per the Fed.
Credit card holders that became newly delinquent rose to 2% the last quarter, about double the rate recorded in the first quarter of 2021, per BI.
Total household debt balances grew $228 billion in the third quarter across all types, especially credit cards and student loans, per the Fed.