A recent survey by the Federal Reserve Bank of New York found that around 9.1% of credit card balances turned delinquent over the past year — the highest rate in more than a decade.
The same study found that 8% of balances on auto loans were overdue — the highest rate since 2010.
Banking executives told the Wall Street Journal over the weekend that the increasingly heavy burden of soaring grocery costs and high interest rates on credit cards are causing greater delinquencies.
Citigroup chief financial officer Mark Mason told bankers at Barclays banking conference last week that clients’ balances have accumulated at a higher rate than usual even as delinquencies have picked up. Growth in spending is driven mainly by Citi’s affluent customers, he said.
Why can’t people act responsibly and honor their obligations to pay back what they’ve borrowed?
I’m so glad that you are well off enough to not feel the pain of inflation, but as for the rest of us inflation hurts. If you are not sure “why” then get out there and get to know “who” is suffering.
Car insurance has risen 40% groceries 25% not including gas and other things we need to buy. Wages are stagnant and my family had to drop our health insurance just to pay our “obligations”. We both work full time and live in a small shabby home with old vehicles. We have kids and this hurts people like us. If you don’t understand how hard that is, then get down on your knees and pray to God to thank him that you are not suffering. I pray every night for the people like me who get up everyday, and still put in 110% even though they know they will be no better off than the day before. It’s soul crushing !
Correct