More Americans are falling behind on their credit card bills.

Old_Joe

Following are excerpts from a current NPR report:

About 8.9% of credit card balances fell into delinquency over the last year, according to the Federal Reserve Bank of New York — a sign that a growing number of borrowers are feeling the strain of rising prices and high interest rates.

"Everything is more expensive. Debt is more expensive. Rent is more expensive. Food, gas, everything," says Charlie Wise, senior vice president at TransUnion, the credit reporting firm. "Even with relatively healthy wage gains we've seen over last several years, many consumers just aren't keeping up with the price pressures."

Maxed-out borrowers are a big concern-
The New York Fed's report shows the pain is not evenly spread. While many households are on solid financial footing, almost 1 in 5 cardholders is "maxed out," using at least 90% of their credit card limit. That's worrisome, the report says, because maxed-out borrowers are much more likely to fall behind on their bills.

People under 30 and those who live in low-income neighborhoods were particularly likely to be maxed out, according to the report. Among Generation Z borrowers, about 1 in 6 was close to exhausting their credit, compared with 4.8% of baby boomers.

Low_Tech

I never even had a credit card until I was 43. How on earth did I manage my life without a credit card??? And, as young people today don't realize, mortgage rates are now normalized.

Mark

"People under 30 and those who live in low-income neighborhoods were particularly likely to be maxed out, according to the report. Among Generation Z borrowers, about 1 in 6 was close to exhausting their credit,..."

It's likely that none of these folks are able to save enough (anything at all) for a home down payment much less ever hope to own one w/o either an inheritance or by winning the lottery. Credit card interest rates are absurd. None of the issuing companies need to be raking in those rates. Things are most certainly messed up.