Credit card and auto loan debt delinquencies are stacking up
The only reason student loan delinquencies are at the lows, is because they are not reported until October 1, 2024
As far as mortgages are concerned most are already locked into 3% rates. Let us see what this looks like… pic.twitter.com/pYy52fSK5J— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) June 18, 2024
Why should this time be any different? pic.twitter.com/wQdCd8LTyh
— Piker Capital (@PikerCapital) June 18, 2024
- Credit Card and Auto Loan Delinquencies:
- According to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, credit card and auto loan delinquencies continue to rise above pre-pandemic levels. This signals increased financial stress, especially among younger and lower-income households.
- In the fourth quarter of 2023, approximately 8.5% of credit card balances and 7.7% of auto loans transitioned into delinquency.
- Serious credit card delinquencies have increased across all age groups, notably surpassing pre-pandemic levels for younger borrowers.
- Student Loan Delinquencies:
- Student loan delinquencies won’t be reported to credit bureaus through September 30, 2024. However, missing payments during this period could still result in accruing interest on your balance.
- Mortgages:
- Most mortgages are currently locked into low rates (around 3%).
- For those who purchased homes at higher rates (e.g., 7%), it’s essential to monitor how this will impact their financial situation in the coming years.