Americans Increasingly Can’t Afford Credit Card Payments as Delinquencies Hit Record Highs

Americans are having growing difficulty making payments on their credit card debt, according to a new report from the Federal Reserve, which shows credit card delinquencies surging to a record high. The share credit card accounts with past due debt payments has reached all-time highs at every time horizon—30, 60, and 90 days—according to fourth-quarter 2023 data from the Federal Reserve Bank of Philadelphia, which was released on April 10. Cardholder stress was further highlighted in payment behavior, with the share of accounts making minimum payments rising 34 basis points from the prior quarter’s reading—and also hitting a record high. That comes at the same time as nominal credit card balances moved up in the same period to their highest level on record, suggesting Americans are increasingly relying on credit cards to finance their consumption....