Severe credit card delinquencies hit 10.7%, highest since 2012, surpassing pre-pandemic levels.

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Credit card delinquencies have surged beyond pre-pandemic levels. According to the Federal Reserve Bank of New York, the share of credit card debt that’s more than 90 days overdue reached 10.7% during the first quarter of 2024, marking a 14-year high1. Just a year ago, severe delinquencies accounted for only 8.2% of credit card debt. This increase is significant and reflects the financial strain faced by consumers. Younger age groups, typically with lower earnings power and savings, are particularly affected. As inflation remains a concern, higher interest rates on credit cards contribute to the rising balances. While this doesn’t necessarily predict a recession, it’s essential to monitor employment conditions and their impact on household financial stability

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