Credit card delinquencies rise as more Gen Z cardholders are maxed out, New York Fed research shows

Collectively, Americans owe $1.12 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.Young adults, who are also burdened by high levels of student loan debt, are increasingly falling behind on the payments, the New York Fed found.

Since most credit cards have a variable rate, there's a direct connection to the Fed's benchmark. As the federal funds rate rose, the prime rate did, as well, and credit card rates followed suit. "With the Fed likely to keep rates higher for longer, credit card rates should remain high for the foreseeable future," Rossman said. "The national average will probably end the year over 20% for only the second time ever.""Interest rates aren't going down anytime soon, but you still have options, especially if you have good credit," said Matt Schulz, chief credit analyst at LendingTree.

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