Debt — and delinquencies — are on the rise for Americans

The economy remains resilient and the job market healthy, but there is a concerning trend of Americans becoming financially overextended, particularly with credit card debt. According to new data from the Federal Reserve Bank of New York, household debt balances have increased in the first quarter, along with higher delinquency rates. Credit card balances that are 90 days or more late reached their highest level since 2012. Delinquency rates for all types of debt increased, highlighting worsening financial distress among some households. While still lower than during the Great Recession, these rates are higher than pre-pandemic levels. Overall household debt rose to $17.69 trillion, mainly driven by mortgage balances. Credit card balances saw a dip after the holidays but have yet to surpass 2008 levels. The higher balances can be attributed to various factors such as population growth, increased online spending, rising car costs, and active consumer activity.