Credit card delinquencies surpass pre-pandemic levels
CNN
More Americans are buckling under the weight of mounting credit card debt.
More Americans are buckling under the weight of mounting credit card debt. All stages of credit card delinquency (30, 60 and 90 days past due) jumped higher during the third quarter of last year, surpassing pre-pandemic levels for the first time, according to a report released Thursday by the Federal Reserve Bank of Philadelphia. The Philadelphia Fed analyzed consumer credit card and mortgage data that large banks provide to the Federal Reserve on a quarterly basis. Philly Fed researchers found that 3.19% of credit card balances were 30 days late (up from 2.76% the quarter before); that 2.21% of balances were 60+ days delinquent (up from 1.91%); and that 1.52% were in serious delinquency of 90 days or more (up from 1.32%). As such, a greater share of people are revolving all or part of their credit card balance. As of the third quarter, 33.18% of accounts paid off their balance in full. That’s the lowest share since the fourth quarter of 2020, Philadelphia Fed data show. The delinquency rates exceeded those seen during the fourth quarter of 2019, and are close to setting a high for the data series that started in 2012, according to the report.
