Posted 1/12/2024, 6:27:00 PM
Credit Card Delinquencies Surpass Pre-Pandemic Highs as Rates Rise
- Credit card delinquencies have surpassed pre-pandemic levels and are nearing decade highs as high interest rates make it harder for consumers to pay bills
- Outstanding credit card balances topped $5 trillion in November 2022, with delinquencies at all stages (30, 60, and 90 days past due) higher than 2019
- Only 33.2% of cardholders paid off their balance in full last quarter, the lowest percentage since Q4 2020, showing growing "consumer fragility"
- Interest rates on cards average about 21% and can reach 30%, making minimum payments very costly over time
- Student loan delinquencies also rose after pandemic pause lifted, with 40% of borrowers not making October payments