Credit card debt is at record high as Fed raises rates again
1 year, 9 months ago

Credit card debt is at record high as Fed raises rates again

Associated Press  

NEW YORK — As the Federal Reserve raises interest rates again, credit card debt is already at a record high, and more people are carrying debt month to month. The Fed’s interest rate increases are meant to fight inflation, but they’ve also led to higher annual percentage rates for people with credit card debt, which means they pay more in interest. Now retired and on Social Security, Deuvall and his wife still have some credit card debt, he said, “in the five figures,” but they’ve also transferred that balance to a zero percent interest card to help contend with high rates. Meanwhile, I’ll just rent.” Dan Stokes, 31, a special education teacher based in Richmond, Virginia, said that a pause on student loan payments that began during the pandemic has helped him make ends meet, but he still carries about $8,000 in credit card debt from month to month across at least three cards.

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Credit card delinquencies are rising. Here’s what to do if you’re at risk
6 months, 2 weeks ago

Credit card delinquencies are rising. Here’s what to do if you’re at risk

Associated Press  

NEW YORK — Seriously overdue credit card debt is at the highest level in more than a decade, and people 35 and under are struggling more than other age groups to pay their bills. The share of credit card debt that’s severely delinquent, defined as being more than 90 days overdue, rose to 10.7% during the first quarter of 2024, …

Borrowers, especially the young, struggle with credit card debt in potentially bad sign for economy
7 months ago

Borrowers, especially the young, struggle with credit card debt in potentially bad sign for economy

Associated Press  

NEW YORK — Consumers are increasingly struggling to pay their credit card bills, raising concerns about severe delinquencies spiraling and sapping consumer spending. The share of credit card debt that’s more than 90 days overdue rose to 10.7% during the first quarter, a 12-year high, according to the Federal Reserve Bank of New York’s report on first-quarter household debt. “The …

More Americans are falling behind on credit card bills
7 months, 1 week ago

More Americans are falling behind on credit card bills

NPR  

More Americans are falling behind on credit card bills Enlarge this image toggle caption Justin Sullivan/Getty Images Justin Sullivan/Getty Images More Americans are falling behind on their credit card bills. About 8.9% of credit card balances fell into delinquency over the last year, according to the Federal Reserve Bank of New York — a sign that a growing number of …

Americans have record-high credit card debts totalling $1.05 trillion amid historic inflation
10 months, 2 weeks ago

Americans have record-high credit card debts totalling $1.05 trillion amid historic inflation

Hindustan Times  

Americans started 2024 on a hopeful note, but it seems a chunk of spending landed on credit cards. The average balance per cardholder hit a record high, reaching $6,360, contributing to a total credit card balance of $1.05 trillion in the fourth quarter. According to a report by the Federal Reserve Bank of New York, credit card debt in the …

Why now is a crucial time to pay off credit card debt
10 months, 2 weeks ago

Why now is a crucial time to pay off credit card debt

Associated Press  

NEW YORK — For Americans who lacked savings prior to the pandemic, financial stress is rising. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say. The New York Fed’s report found that 6.4% of credit card debt was delinquent …

Some Americans have become saddled with credit card debt as rent and everyday prices remain high
10 months, 2 weeks ago

Some Americans have become saddled with credit card debt as rent and everyday prices remain high

Associated Press  

NEW YORK — While the U.S. economy is broadly healthy, pockets of Americans have run through their savings and run up their credit card balances after battling inflation for more than two years. A recent report from the credit rating company Moody’s showed that credit card delinquency rates and charge-off rates, or the percent of loans that a bank believes …

Renters are getting buried in credit card debt
10 months, 2 weeks ago

Renters are getting buried in credit card debt

LA Times  

Noticeable pockets of Americans are quickly running up their credit card balances and increasing numbers are now falling behind on their debts. Although the U.S. economy is broadly healthy, pockets of Americans have run through their savings and run up their credit card balances after battling inflation for more than two years. A recent report from credit rating company Moody’s …

Americans ran up $105 billion in credit card interest last year alone
1 year, 1 month ago

Americans ran up $105 billion in credit card interest last year alone

CNN  

New York CNN — Danielle Foskie is among a growing number of Americans who have stumbled into a credit card doom loop. In 2022, about one in 10 general purpose credit card accounts in the United States were in “persistent debt” — a difficult-to-escape situation where borrowers are charged more in interest and fees than they pay down in principal, …

Fed holds steady on interest rates but hints a further hike could be on the way this year - what does it mean for YOUR pocket?
1 year, 3 months ago

Fed holds steady on interest rates but hints a further hike could be on the way this year - what does it mean for YOUR pocket?

Daily Mail  

The Federal Reserve has held interest rates steady - keeping benchmark borrowing costs between 5.25 and 5.5 percent. The Federal Reserve has held interest rates steady - keeping benchmark borrowing costs between 5.25 and 5.5 percent Chairman Jerome Powell spoke to reporters at a press conference following the announcement While high interest rates are good news for those with money …

Americans’ credit card debt hits a record $1 trillion
1 year, 4 months ago

Americans’ credit card debt hits a record $1 trillion

CNN  

Minneapolis CNN — Americans’ credit card debt levels have just notched a new, but undesirable, milestone: For the first time ever, they’ve surpassed $1 trillion, according to data released Tuesday by the Federal Reserve Bank of New York. During the second quarter, credit card balances shot up by $45 billion, or nearly 4.6%, to land at $1.03 trillion, according to …

How the Fed's latest rate hike will hit your wallet
1 year, 7 months ago

How the Fed's latest rate hike will hit your wallet

Daily Mail  

The Federal Reserve has raised its key interest rate yet again in its drive to cool inflation, a move that will directly affect many Americans through higher borrowing rates. Rates on credit cards and auto loans, which have been surging since the Fed began raising rates last year, will rise even more, with WalletHub projecting the latest rate hike will …

Credit Card Nation: How we went from record savings to record debt in just two years
1 year, 9 months ago

Credit Card Nation: How we went from record savings to record debt in just two years

NPR  

Credit Card Nation: How we went from record savings to record debt in just two years Enlarge this image toggle caption Fajrul Islam/Getty Images Fajrul Islam/Getty Images Stephanie Roth, 41, realized just how much her financial situation had deteriorated when she was signing up to bring a dish to the Valentine's Day party at her kids' daycare. The Great Money …

Fed rate hike is smallest in nearly a year. It will still impact your money.
1 year, 10 months ago

Fed rate hike is smallest in nearly a year. It will still impact your money.

CBS News  

What the latest Federal Reserve interest rate hike means for the U.S. economy The Federal Reserve on Wednesday made its eighth consecutive rate hike since March of 2022. Uncertainty abounds "The Fed's interest rate movements may be less or smaller than last year, but that doesn't take away the majority of the uncertainty," said Wei Hu, head of financial research …

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