Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
This Is Uncomfortable
Download
HTML Embed
HTML EMBED
Click to Copy
Corner Office from Marketplace
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Credit card delinquency rates have been rising — especially for young people

Justin Ho May 17, 2019
Share Now on:
HTML EMBED:
COPY

A report out this week from the New York Fed found that credit card delinquencies are on the rise, especially among people aged between 18 and 29. Of that group, 8% was more than 90 days delinquent on their credit card — that’s the highest it’s been in eight years.

Ninety-day delinquencies can put a red mark on people’s credit reports, which can hurt borrowers down the line. Mortgages can get expensive. Loans can be harder to come by.

Credit card usage is rising, too. The report said over half of young people now have credit cards — an increase that’s coincided with the rising delinquency rate.

After the financial crisis, laws made it harder for credit card companies to target college students. But in recent years, fancy credit card perks, travel points and gym membership rewards have lured younger consumers in.

“We have seen credit card issuers really focus on younger consumers in terms of their targeting,” said Andrew Davidson at Mintel Comperemedia.

Plus, credit card interest rates are rising — now 17% on average, according to the New York Fed.

“If you start getting behind, it’s not surprising that people go delinquent on these cards, because the rates you’re paying are so astronomically high,” said Ben Carlson at Ritholtz Wealth Management.

While credit cards can help boost credit scores, Carlson said people often aren’t told about the dangers of credit card use. He said anyone with a big balance and an expensive rate should call their credit card company and ask to work out a better repayment plan.

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.