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US Credit Card, Student, and Auto Loan Delinquencies Rise; $8.5B Monthly Income Impact as Collections Resume

16 posts • GPT (4.1 mini)

Updated May 23, 2025, 04:50 PM

Delinquencies on various loan products in the United States have increased in recent years, with credit card delinquencies reaching their highest levels since 2011, according to data from the New York Federal Reserve. The share of credit card debt more than 90 days past due has been rising since 2023 across different regions and income brackets. The pause on reporting delinquent federal student loans, implemented during the pandemic, ended recently, leading to a spike in student loan delinquencies and affecting approximately 10% of U.S. households.

This resumption of collections by the Department of Education puts millions of Americans at risk of wage garnishments, which JPMorgan Chase estimates could reduce disposable income by up to $8.5 billion monthly. Auto loan delinquencies are also rising, particularly among borrowers with middle-tier credit scores (FICO 620–659), while subprime borrowers show some improvement. The overall consumer debt in the U.S. has reached a record $18.2 trillion. Analysts warn that these trends, combined with tariffs and economic uncertainty, pose headwinds to consumer spending and financial health. Financial advisors recommend that borrowers take proactive steps rather than waiting for potential student loan forgiveness programs.

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#United States #New York Federal Reserve #Department of Education #Americans #JPMorgan Chase

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Sources

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朝倉智也(Tomoya Asakura)

@tomoyaasakura

The delinquency rate of credit card debt is an important indicator showing the incidence of economic hardship, and it is a clue to decipher the economic situation as a leading signal of economic recession. Currently, serious delays of 90 days or more by American consumers are increasing at a critical pace, the highest in the past 14 years. The rate of increase in delinquency rates has surpassed even during the Lehman shock.

unusual_whales

@unusual_whales

Credit card delinquency is increasing:

unusual_whales

@unusual_whales

The delinquency rate for student loan balances spiked after a nearly five-year pause due to the pandemic, according to the Federal Reserve Bank of New York.