Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT

Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT

Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT

According to a recent report from the Federal Reserve Bank of New York, Americans collectively owe $1.12 trillion in credit card debt. While credit card balances dipped by $14 billion in the first quarter of 2024, delinquency rates surged, especially among young adults aged 18 to 29, who grapple with hefty student loan debts and soaring living costs. With shorter credit histories and lower limits, these Gen Z borrowers are more prone to maxing out their cards and missing payments, exacerbating financial strain.

The economic landscape, marked by rising inflation and interest rates, further compounds the debt burden. Higher prices for essentials like food, fuel, and housing strain household budgets, pushing more consumers into carrying balances or falling behind on payments. Younger generations face unique challenges, including lower real wages than their predecessors and substantial student loan obligations.

Credit cards, already a pricey borrowing option, have become even costlier, with rates exceeding 20%, near record highs. The Federal Reserve’s consecutive rate hikes since 2022 directly impact credit card rates, posing a formidable challenge for debt-ridden individuals. Amidst these financial pressures, experts suggest exploring options like negotiating lower rates, consolidating debt with lower-interest loans, or switching to interest-free balance transfer cards.

Navigating credit card debt requires proactive measures, including timely payments, a thorough comparison of card offers, and open communication with issuers to explore assistance options. Despite the daunting financial landscape, understanding available strategies empowers individuals to mitigate debt and build healthier financial habits for the future…………full-loaf-600x400-1-e1700879832480 Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT[read more]

Rising Dough

Rising-Dough-e1700879911412 Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CTHow do rising interest rates and inflation impact consumer borrowing behavior, particularly among younger generations, and what strategies can individuals employ to manage credit card debt effectively amidst these economic challenges?

*Click on the “Full Loaf” icon to read the full article! After you read the full article, let us know your thoughts.

0 0 votes
Article Rating
stone-street-coffee-logo Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT ☕️ **Discover Stone Street Coffee Company – Your Coffee Haven!** Today’s Dough readers, if you’re on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today’s Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street’s commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

Subscribe
Notify of
7ffbe04dbc94055f0b299e11c6032831?s=56&d=mm&r=g Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows | NBC CT

0 Comments
Inline Feedbacks
View all comments

Share this content:

0 0 votes
Article Rating
stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x
×