From Time:

Auto loan and credit card delinquencies in the US are at their highest levels in over a decade, according to a report from the New York Fed. 7.7% of car loan debt is 30 days late, and credit card balances have risen sharply and are 14.5% higher than a year ago.

One reason for the rise in delinquencies is the increase in car prices, making borrowers take out larger loans with higher interest rates. Additionally, US consumers who have lost purchasing power due to inflation are relying more on credit cards for their spending.

Credit card delinquency rates for debt over 30 days late have jumped to 8.5% in the fourth quarter of 2023, up from 5.9% a year earlier – the highest level since mid-2011. Lower-income and younger households are the most at risk of falling behind on payments.



Read more: Auto Loan and Credit Card Delinquencies Rise to New Highs