Credit card balances and delinquencies have been rising as consumer spending remains strong, but government support drops from pandemic levels.
During the third quarter, large bank credit card nominal balances continued to grow, and all stages of delinquency approached the highest levels on record since 2012, according to a report released Thursday (Jan. 11) by the Federal Reserve Bank of Philadelphia.
Compared to pre-pandemic levels, all stages of delinquency are now higher, according to the report. Credit card nominal balances topped pre-pandemic levels in 2022.
“Greater consumer fragility is also evident in payment behavior, with a greater share of consumers revolving all or some portion of their cycle end balance,” Gene Huang, principal financial economist, and Anna Veksler, senior analyst, at the Philadelphia Fed, wrote in the report.
That trend has been driven by strong consumer spending and reduced government support, compared to the pandemic period, according to the report.
Seeing these changes, large banks have been granting fewer credit line increases and reducing credit lines more frequently over the past four quarters, the report said.
ALL on BIDEN !!
Why won’t people curtail their overspending, establish and maintain a basic household budget, and spend below their means rather than borrowing to spend above their means? And then they’ll file bankruptcy and make all the rest of us pay for their mistakes. Sickening.
Bankrupting America !!!!! Soon the Govt will make it so You cannot claim BK anymore Only Companies !!!!
Govt will soon Ban Cash !!!! So you have to use a Card so they can TRACK YOU !!!!!!