Rising Credit Card Delinquencies and Maxed-out Users: Key Insights from New Research
Wednesday, 15 May 2024, 14:05
Rising Credit Card Delinquencies: Research Highlights
Credit card delinquencies are increasing, with nearly 1 in 5 users maxed-out, according to a report from the New York Federal Reserve. Household debt rose by $184 billion in the first quarter, showcasing financial strain.
Key Findings:
- Delinquency Rates Rising: Annualized delinquency rates for credit card balances and auto loans are on the uptick.
- Usage Patterns: Variations in credit card utilization rates among borrowers, with 'maxed-out' users using at least 90% of available credit.
- Demographic Insights: Younger borrowers and those in low-income areas more likely to be maxed-out.
The research emphasizes the need for heightened financial awareness and responsible credit management in the face of mounting debt challenges.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.