Posted 1/15/2024, 6:12:56 PM
Credit Card Delinquencies Rise Past Pre-Pandemic Rates as Inflation Adds to American Debt Burdens
- More Americans are falling behind on credit card payments, with delinquencies surpassing pre-pandemic levels
- All stages of delinquency (30, 60, and 90 days past due) increased in Q3 2022
- As of Q3 2022, the lowest share of credit card balances (33.18%) were paid off in full since Q4 2020
- Banks are responding by granting fewer credit line increases and reducing limits more often
- With high inflation and interest rates, minimum payments cover little principal, prolonging debt for years