From Dow Jones & Company:



The article discusses the increase in credit card delinquency rates in the United States, which have reached a level not seen in over a decade. Factors contributing to this trend include high credit card interest rates, rising prices, and the restart of federal student loan payments. According to Goldman Sachs researchers, the delinquency rate is expected to continue rising in 2024, with low-income card holders being the most strained. However, the researchers also note that the rise in delinquency rates does not appear to be caused by distress in the labor market or unsustainable spending. Additionally, a YouGov poll found that almost half of people are looking to save money, reduce spending, and pay off debts in the new year. The article also mentions a separate trend of more people missing mortgage payments, with default rates on past-due Federal Housing Administration loans reaching a nine-year high in November. While overall mortgage delinquency rates are still below pre-pandemic levels, this trend is considered “worth watching” by experts.



Original: More people fell behind on credit card bills this year. Here’s how rough it could get in 2024.