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Why is credit card debt rising again?

Jan 29, 2024
Delinquencies are up, especially for people with lower incomes and multiple types of debt, according to the New York Fed.
People with jobs feel comfortable spending money on their credit cards, says Liz Ann Sonders, chief investment strategist at Charles Schwab.
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More people are falling behind on debt, but fewer are in collections

Nov 8, 2023
Just before the pandemic, the New York Fed found that about 9% of people had bills that ended up in collections. Now, less than 5% do.
Medical debt previously made up about 60% of debt in collections. But data shows it doesn’t tell you much about someone’s creditworthiness.
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Despite rising interest rates, consumers increased their spending in July

Aug 31, 2023
But what they're spending their money on is shifting.
Despite climbing interest rates, consumers spent .9% more on goods in July than in June.
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Why do consumers keep on spending — even when they don't have the cash?

Aug 14, 2023
Households feel their finances have been improving, the New York Fed says. But Americans appear to be racking up more credit card debt.
Analysts are looking at consumers' motivations for robust spending despite high prices and mounting debt. Per one theory, the feeling of surviving hardship and unpredictability has made them more confident.  
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Inflation, high interest rates, and access are all part of credit card debt exceeding $1 trillion

Aug 9, 2023
A strong labor market also means people feel more confident they'll be able to pay the debt back.
Gen Zers are are growing their credit card balances at a faster pace than any other generation, and are confident they'll be able to pay it back in the future.
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Consumer confidence is rebounding. Here's why.

Jul 26, 2023
The University of Michigan's consumer sentiment index is up 40% over last year, aided by moderating inflation and job market strength.
"We know from history that as long as folks are working, they feel more comfortable about spending,” said Quincy Krosby of LPL Financial.
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Americans have almost $990 billion in credit card debt

Jun 9, 2023
But with interest rates high and wage growth slowing, that level of spending is becoming unsustainable.
Between early 2021 and mid-2022, about 10 million people got credit cards who hadn’t had them before.
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How a college credit card signup led to $20,000 in debt

Apr 24, 2023
Yanely Espinal, host of Marketplace's podcast "Financially Inclined," tells the story of taking on a financial responsibility she wasn't prepared for.
"I sat down, added up all the credit card debt that I had," Yanely Espinal said. "And it was just over $20,000. That scared me half to death."
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Inflation, high spending propels consumer debt up

Mar 9, 2023
Different types of consumer debt saw a substantial rise in January, according to the Federal Reserve.
Consumer debt, led by credit card spending, has been on the rise in the U.S. in the past few years.
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Credit card debt is rising. Again.

Feb 20, 2023
Card debt, which fell during the pandemic, is at a record $986 billion, according to the New York Fed. Delinquencies are rising too.
Though expanding credit card debt may represent a return to normal, the "pre-pandemic normal ought to concern Americans," says Aaron Klein at the Brookings Institution.
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