Credit card delinquencies rose in the first three months of the year. That's a sign of the growing financial stress some families are feeling in an era of rising prices and high interest rates.
Credit card delinquencies rose in the first three months of the year. According to the Federal Reserve Bank of New York, 1 in 6 card users are"maxed out," using at least 90% of their credit limit.About 8.9% of credit card balances fell into delinquency over the last year, according to the— a sign that a growing number of borrowers are feeling the strain of rising prices and high interest rates.
People under 30 and those who live in low-income neighborhoods were particularly likely to be maxed out, according to the report. Among Gen Z borrowers, about 1 in 6 were close to exhausting their credit, compared to 4.8% of baby boomers.Overall credit card balances totaled $1.115 trillion in the first quarter of the year, $129 billion more than last year. For card users who pay their balance in full every month, that's not a problem.
"Time is not your friend if you're a consumer who's struggling with debt," says Mike Croxson, CEO of the National Foundation for Credit Counseling."Odds are as you go through paying minimums, missing minimum payments and other things, those rates are going to continue to increase.
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