The Troubling Rise of Credit Card Debt ( 1 Trillion  USD) and Delinquency in the U.S V2

As the U.S. economy continues to navigate the post-pandemic landscape, a concerning trend has emerged – the rapid rise in credit card debt and delinquency rates across the country.

According to the latest data, credit card debt in the United States has reached an all-time high, surpassing $1 trillion as of the third quarter of 2023.

This represents a significant increase from the previous peak of $870 billion during the 2008 financial crisis.

Accompanying this surge in debt is a worrying uptick in credit card delinquency rates, which measure payments that are 90 days or more overdue. The delinquency rate reached 5.32% in the last quarter of 2019, up from 5.16% in the previous quarter.The burden of this growing debt crisis is not evenly distributed. Younger Americans, aged 18-29, have the highest credit card delinquency rate at 9.36% – a staggering 76% higher than the overall average. Delinquency rates tend to decrease with age, with those 50 and older having rates below 5%.

Certain demographic groups, such as renters and lower-to-middle income Americans, are also disproportionately affected by the rise in credit card debt and delinquencies.

This is likely due to the impact of high inflation and the cost of living outpacing wage growth, leaving these populations with fewer financial resources to manage their debt obligations.

The implications of this trend are far-reaching, both for individual households and the broader economy. As credit card debt and delinquency rates continue to climb, the financial stress on American consumers could have ripple effects on consumer spending, economic growth, and the overall stability of the financial system.

Policymakers and financial institutions will need to closely monitor this situation and explore solutions to address the underlying drivers of this crisis, ensuring that the financial well-being of all Americans is protected in the face of these challenging economic conditions.