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The Pressure of Debt

We have reported here before that delinquencies on credit card payments were rising, but a recent report by the Federal Reserve Bank of Philadelphia shows that delinquency rates were the highest on record in the fourth quarter with almost 3.5% of card balances being 30 days past due as of the end of December. That is the highest on record since 2012. With high inflation and rising costs consumers are struggling to keep up. New payment option like Buy Now Pay Later (BNPL) consumers have relied on using credit cards and pushing payments forward to manage their lives, but the financial stress on families is only getting worse. 

Yes, the economy is showing signs of strength in the job market and consumer spending, but at what cost? Families are living in extreme financial stress. Overspending and missed payments are becoming the new norm for families across the United States and the pressure of debt is becoming unbearable for some. 

We continue to monitor delinquency rates and other financial stresses to help business make better financial decisions and attract new customers. The way to consumers’ hearts are choices and savings. Consumer spending is slowing down, the confidence in the economy is at an all time low, so businesses need to understand that consumers are looking for a break and ways to spread out their cash flow. 

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