Credit card delinquency rates are on the rise. steps taken

flash sale
Don't miss this offer

standard digital access

FILE – Various credit cards are shown in Atlanta, January 18, 2024. Severely overdue credit card debt is at a 14-year high, with people aged 35 and under struggling to pay their bills more than other age groups. (AP Photo/Mike Stewart, File)

Severely overdue credit card debt is at its highest level in more than a decade, with people aged 35 and under struggling to pay their bills more than other age groups.

The share of credit card debt that is seriously delinquent (defined as more than 90 days past due) rose to 10.7% in the first quarter of 2024, according to the New York Federal Reserve. A year ago, only 8.2% of credit card debt was seriously delinquent.

If you are experiencing delinquent debt or are at risk of delinquency, experts recommend talking to a nonprofit credit counselor and negotiating directly with your creditors. Here's what you should know:

Anyone at risk of delinquency should seek assistance from a nonprofit credit counselor as soon as possible.

Most credit card companies and other lenders have hardship programs.

Contact credit card companies to negotiate interest rates, fees and long-term payment plans

The most important things borrowers can do is understand their credit score and make timely payments to avoid paying extra interest on revolving balances and debt.

LendingTree data shows the average annual interest rate on new credit cards is 24.71%, the highest rate since the company began tracking in 2019.

In addition to rising credit card delinquencies, retail spending also stalled in April. Walmart said customers are spending more on necessities and less on discretionary items. Starbucks lowered its sales forecast, while McDonald's offered more deals as people spent less.

See more from The Boston Herald

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *