NEW YORK—Consumer debt has markedly risen in the last few years amid a challenging economic environment for consumers that has contributed to delinquency rates rising to their highest levels in more than a decade, according to a new report.
A quarterly report published this month by the Federal Reserve Bank of New York on household credit and debt found that between the first quarter of 2021 and the second quarter of 2024, credit card debt surged 48.1% while household debt — which includes mortgages and auto loans — rose by 21.6%, Fox Business stated.
“In dollar terms, credit card debt rose from $770 billion in early 2021 to $1.14 trillion in the most recent quarter, while household debt increased from $14.64 trillion to $17.8 trillion in the same period,” Fox Business stated in its analysis.
Delinquencies Grow
As American households' debt burdens rise, delinquency rates have grown as well. In the last 12 months, about 9.1% of credit card debt balances and 8% of auto loan balances moved into delinquency — the highest levels since early 2011 and the end of 2010, respectively. The early delinquency rate for mortgages edged up by 0.1 percentage point, though the New York Fed noted that remains low by historical standards, Fox Business added.
As reported, NCUA has been flagging its concerns over rising delinquencies during much of this year.