The delinquency rate for credit card accounts that are “nearly or almost completely maxed out” did spike to 33% in Q1 2024. This is the highest rate in at least a decade and reflects significant financial stress among consumers who have heavily utilized their credit limits.
US HOUSEHOLDS ARE STRUGGLING:
The delinquency rate for credit card accounts nearly or almost completely maxed out spiked to 33% in Q1 2024, the highest in at least a decade.
The share of balances that went into delinquency for that category has more than DOUBLED in just 3 years pic.twitter.com/kbzSxoVoer
— Global Markets Investor (@GlobalMktObserv) July 23, 2024
$V after reporting increased #consumer delinquencies 📉 👀 pic.twitter.com/f84NGHG0Oi
— Invariant Perspective (@InvariantPersp1) July 23, 2024
This is concerning:
Auto loans write-offs and bankruptcies as percentage of total loans have increased to the highest level since 2011.
At the same time, the percentage of car loans going into early-stage delinquency rose to the highest in 13 years.
People struggle financially pic.twitter.com/L6fdDM37g2
— Global Markets Investor (@GlobalMktObserv) July 23, 2024
Sources:
fred.stlouisfed.org/series/DRCCLACBS
www.newyorkfed.org/newsevents/news/research/2024/20240514?daily
fred.stlouisfed.org/series/DRCCLACBN
ca.finance.yahoo.com/news/visa-quarterly-profit-jumps-20-201131549.html