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Today: Jun 13, 2024

Young borrowers struggle as loan delinquencies on the rise.

1 min read

The Federal Reserve Bank of New York has released its quarterly report on household debt and credit, which reveals that credit card balances have increased by $50 billion to $1.13 trillion, and auto loan balances rose by $12 billion to $1.61 trillion, putting greater strain on younger borrowers’ finances. The report also shows that an annualised 8.5% of credit card balances and 7.7% of auto loans have transitioned into delinquency status. In addition, the delinquency rates for credit card debt held by borrowers between the ages of 18 and 29 stood at 9.6% at the end of 2023, up from 7.6% the previous year, while 4.8% of auto loans were in serious delinquencies for consumers aged between 18 and 29, compared to 4.3% in 2022.