The latest revelation about the debt crisis in America is nothing short of alarming. With a staggering 29.6% of residents in the nation’s 100 largest metros falling behind on at least one debt payment during the third quarter of 2023, and 27.3% experiencing serious delinquencies over 90 days past due, the financial health of a significant portion of the population is in peril. This disturbing trend, compounded by the record $17.29 trillion in household debt last year, reflects an imminent economic threat that could spiral into a full-blown crisis. Late payments not only undermine individuals’ financial stability but also have far-reaching consequences, damaging credit scores and exacerbating the overall economic fragility.
via MSN:
American households racked up a record $17.29 trillion in debt last year, driven by mortgage, credit card and student loan balances, according to the latest numbers from the Federal Reserve Bank of New York. Now, fresh data indicates an alarmingly high percentage of consumers began falling behind on their payments at the same time.
A new study released by LendingTree found 29.6% of residents in the nation’s 100 largest metros were behind on at least one debt payment during the third quarter of 2023, and 27.3% had serious delinquencies that were over 90 days past due or more. More than a quarter, 26.2%, had debt in collections.
“That’s a huge number of people behind on their debt payments,” LendingTree chief credit analyst Matt Schulz said. “Late payments can damage your credit score, making things even tougher on you financially.”