NEW YORK—Even as U.S. consumers accumulated debt at a slower rate in the second quarter, the number of credit card holders who have fallen behind on their bills has hit levels not seen in more than a decade, according to new data.
The Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit shows 10.93% of credit card accounts were delinquent by more than 90 days, the highest it's been since the first quarter of 2012. Auto loans delinquencies of 90+ days hit 4.43%, the highest level since the first quarter of 2021, Investopedia stated in its analysis.
“The consumer looks to be in a decent place but the delinquency rates for auto loans and credit cards continue to be something that we’re keeping an eye on,” said a New York Fed researcher on a background call to Investopedia.
$109 Billion Increase
The report showed that total household debt rose by $109 billion in the second quarter, an increase of 0.6%, down from the 1.1% rise in the first quarter.
About 3.2% of outstanding debt was in some stage of delinquency, but when compared with pre-pandemic levels, delinquencies overall were much lower, Investopedia noted.