Delayed payments on credit cards, mortgages, and car payments are increasing as households save money. Pandemic-era stimulus At first it was padded, but it was dropped.
extraordinary bank card balance According to financial data firm Equifax, sales rose 18.1% year-on-year to $851.4 billion.
90 days past due on credit card 5.1 percent,from 3.4 percent in the second quarter of last year, according to Fed data.
Fitch senior director Herman Poon analyzed consumer behavior in July and said, “The steady increase in delinquencies for three consecutive quarters reflects increased stress on consumers’ ability to repay their general purpose credit card balances.” “It shows that we are doing well,” he said.
Credit card debt and other revolving loans Exceeds $1 trillion In August.
Delinquencies are also rising, but economists say this is a sign the economy is regaining balance after the pandemic, rather than an imminent recession.
“Unfortunately, that’s the way it is. It’s not a big warning Dean Baker, an economist at the Center for Economic Policy Research, told The Hill.
“The rise in delinquency rates is simply returning us to where we were before the pandemic, when the economy was doing very well by most measures,” he said.
The Hill’s Tobias Burns has more information.
