Credit Card Balances Just Grew by the Biggest Amount in Over 20 Years
Rising delinquencies on credit cards show that Americans are having difficulty managing their debt — and some people are struggling more than others.
The Federal Reserve Bank of New York's quarterly report on household debt shows that credit card delinquencies increased across demographics in the third quarter (July through September), and millennials and borrowers with auto loans and/or student loan debt disproportionately drove that growth.
The average credit card interest rate is currently hovering above a whopping 20%, compared to just 14.5% in November 2021, before rates started surging. Now that student loan payments have resumed after the three-year forbearance period imposed at the start of the pandemic, the New York Fed says repayment challenges will likely continue for borrowers.
Credit card balances and delinquencies rise
