Credit Card Delinquencies Surge to Pre-Pandemic Highs as Inflation Squeezes Consumer Budgets
• Credit card delinquencies (30, 60, and 90 days past due) surged in Q3 2022, exceeding pre-pandemic levels for the first time • 3.19% of credit card balances were 30 days late, 2.21% were 60+ days delinquent, and 1.52% were 90+ days delinquent • Fewer accounts are being paid off in full - only 33.18% of accounts were paid off fully in Q3, the lowest since Q4 2020 • Banks are responding by granting fewer credit line increases and reducing credit lines more frequently • This comes as high inflation makes expenses more costly for consumers, while interest rates on credit card debt are the highest in 2 decades