NEW YORK — Seriously overdue credit card debt is at the highest level in more than a decade, and people 35 and under are struggling more than other age groupsthat’s severely delinquent, defined as being more than 90 days overdue, rose to 10.7% during the first quarter of 2024, according to the Federal Reserve Bank of New York. A year ago, just 8.2% of credit card debt was severely delinquent.
“The best thing to do is to reach out, give an honest assessment of your ability to pay over time, and ask what options are available to you both ‘on and off-the-menu,’” McClary said. This kind of phrasing can give creditors an opening to offer more flexibility, he said. “Younger and less affluent people are experiencing challenges,” he said. “And high interest rates are having an effect.”
On top of increasing credit card delinquencies, retail spending stalled in April. Walmart has said its customers are spending more on necessities and less on discretionary goods. Starbucks lowered its sales expectations, andThe Associated Press receives support from the Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.