Philadelphia Fed: Credit Card Delinquencies Highest Since 2012

Our content may contain affiliate links. If you click a link and apply, we may receive compensation at no added cost to you. We work hard to provide great information and appreciate your support!

Credit card delinquencies reached the highest levels in a long time, according to the Philadephia Federal Reserve. Consumers are feeling it as inflation continues to bite.

Credit Card Delinquencies Rising

In yet another sign that US consumers are tapped out, credit card delinquencies at the end of 2023 hit the highest levels since 2012. Check out the following from the Philadelphia Fed:

Credit card performance further deteriorated at the end of 2023, with firms recording the worst 30+, 60+, and 90+ account-based days past due levels in the reporting series. Notably, card performance usually declines in the fourth quarter. Stress among cardholders was further underscored in payment behavior, as the share of accounts making minimum payments rose 34 basis points to a series high from last quarter’s reading. 

https://www.philadelphiafed.org/surveys-and-data/2023-q4-large-bank

More people are making just minimum payments and more people are falling behind on their credit card payments.

It’s not surprising that consumers are feeling the pinch. Also at the end of 2023, credit card interest rates hit record highs and credit card balances hit record highs.

Inflation continues to run hot, according to the latest consumer price index report.

It’s no surprise that credit card delinquencies are rising.

I feel it myself; groceries have probably at least doubled over the last few years. Everything else has gone up too: gas, insurance, eating out (which we don’t do much of anymore), hotels – you name it.

You pay more and you get less these days, unfortunately.

How to Eliminate Credit Card Debt

If you’re a homeowner and struggling with credit card debt, you may want to consider a home equity agreement to consolidate debt.

A home equity agreement enables you to convert home equity into cash with no monthly payments and no interest charges – even if you can prove income and have less than perfect credit. Click here to find out more.

Mike Roberts
About Mike Roberts

Mike Roberts is the founder of HEAZone.com, a published author, and a highly experienced veteran of the mortgage industry. When he's not working, he enjoys spending time with his family, skiing, camping, traveling, or reading a good book. Roberts is the author of The Reverse Mortgage Revealed: An Industry Insider’s Guide to the Reverse Mortgage, which is available on Amazon.

Leave a Comment