Serious Credit Card Delinquencies rise to 12.31%, the highest level since 2011 🚨🚨 pic.twitter.com/KPm8CIdS04
— Barchart (@Barchart) May 15, 2025
Credit card delinquencies have surged to 12.31%, marking the highest level since 2011. The latest data from the Federal Reserve Bank of New York paints a troubling picture of consumer debt, with households struggling under the weight of rising interest rates and stagnant wages. The financial system is flashing warning signs, and policymakers may soon have no choice but to respond.
Household debt has reached $18.2 trillion, a 2.9% increase from last year. While consumers managed to pay down $29 billion in credit card balances during the first quarter, serious delinquencies—defined as accounts 90 days or more past due—have climbed sharply. The rate of late-stage credit card delinquencies jumped 8.5% from the previous quarter, signaling growing distress among borrowers.
The debt-to-income ratio is worsening. Credit card balances now stand at $1.18 trillion, accounting for 6.5% of total household debt. The average credit card interest rate has soared past 22%, making it harder for consumers to manage payments. Despite efforts to reduce balances, the total credit card limit remains at $5.16 trillion, with 22.9% of available credit already utilized.
The bond market is watching closely. Rising delinquencies could trigger tighter lending conditions, forcing banks to increase loan-loss reserves and restrict credit access. The Federal Reserve’s reluctance to cut rates has only added to the uncertainty, leaving borrowers with fewer options to refinance their debt.
Sources
https://ycharts.com/indicators/us_credit_card_accounts_late_by_90_days
https://www.newsnationnow.com/business/your-money/debt-credit-cards-auto-student-loans/