Reported 6 months ago
Consumers, especially young adults, are facing challenges in paying their credit card bills, leading to concerns about potential severe delinquencies impacting consumer spending. The Federal Reserve Bank of New York reported that the share of credit card debt overdue by more than 90 days rose to a 14-year high of 10.7% in the first quarter, with those in their 20s and 30s struggling the most. The increase in delinquencies, along with high inflation rates and an uncertain labor market, is raising worries about the economy as consumer spending is crucial for growth. Despite forecasts for strong earnings growth, signs of consumer fatigue and reduced spending are emerging, potentially indicating a shift in economic dynamics.
Source: YAHOO