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Key Takeaways
- At the end of December, 9.7% of all credit card debt was delinquent, the highest since the beginning of 2021, according to the New York Federal Reserve.
- The percentage of credit card debt becoming seriously delinquent is higher than the average for those under 40 years old.
- Resumption of required payments on federal student loans is partially to blame for the disparity, as younger borrowers are more likely to have that debt.
Persistent spending may have boosted the U.S. economy, but it is taking a toll on households.
At the end of December, 9.7% of all credit card debt was delinquent, according to a report released by the New York Federal Reserve Tuesday on household debt. That’s more than the 9.4% in the previous quarter and the highest since the beginning of 2021.
Credit card debt is especially increasing financial stress for those who are under 40 years old. The percentage of credit card debt becoming seriously delinquent for those in that age group is higher than the average of all debt holders and is almost double their older counterparts.
Researchers with the Federal Reserve Bank of New York said the resumption of required payments on federal student loans is partially to blame for the disparity, as younger borrowers are more likely to have that debt.