2023-11-08 03:52:00 ET
Americans' credit card debt swelled to a record $1.08T in Q3, up $154B from Q3 2022, amid strong consumer spending, according to the Federal Reserve Bank of New York. This marks the largest increase since the NY Fed began tracking household debt in 1999.
Total delinquency rates rose in Q3, with 3% of outstanding debt in some stage of delinquency at the end of Sept. Delinquency rates increased the sharpest for millennials (aged 30-39), while credit card delinquencies have surpassed pre-pandemic levels.
"Credit card balances experienced a large jump, consistent with strong consumer spending and real GDP growth," said Donghoon Lee, economic research advisor at the NY Fed.
"The continued rise in credit card delinquency rates is broad based across area income and region, but particularly pronounced among millennials and those with auto loans or student loans," he added.
NY Fed researchers cautioned that since the labor market and the economy have remained resilient, "pinning down the causes of rising delinquencies rates is more difficult."
Aggregate household debt balances increased by $786B Y/Y to $17.29T in Q3, and was $3.1T higher since 2019-end, just before the pandemic recession.
"Credit card balances are increasing faster than any other type of debt," said Bankrate analyst Ted Rossman, pointing to high inflation and record-high credit card rates as key contributors. "More people are using credit cards just to get by."
More on consumer debt
- Consumer borrowing rises less than expected in September
- Lending standards tighten broadly, demand weakens in Q3: Fed's SLOOS
- Sept. credit card metrics roughly reach pre-pandemic levels - What's ahead?
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Credit card debt hits new record, delinquencies rise most among millennials