According to the New York Fed, Americans are Falling Further Behind on Debt Payments

According to a report released by the New York Fed, household debt has reached an all-time high, while Americans fell slightly behind in their credit card and other loans during the last quarter. The figures presented a mixed picture of how borrowers are navigating the ongoing high interest rates. Although homeowners continue to benefit from low, locked-in monthly payments, mortgage delinquencies have slightly increased but remain near two-decade lows.

The share of credit card balances overdue by more than 30 days reached 11.1%, the highest level since early 2012. The total debt rate rose from 3.2% in spring to 3.5%. Thanks to overall growth in mortgage, auto, credit card, education, and other consumer debts, the country's total debt load reached a new peak of $17.9 trillion.

Researchers noted that rising delinquency rates are concentrated among younger and potentially lower-income borrowers, who are more likely to be dealing with credit card debt or auto loans rather than mortgages. Donghoon Lee, an economic research advisor at the New York Fed, stated, "Although household balances continue to grow nominally, income growth has outpaced debt. Nevertheless, high delinquency rates highlight stress for many households, even as there is some moderation in delinquency trends this quarter."