WASHINGTON—Consumers are increasingly relying on credit cards to maintain their lifestyles while grappling with inflation and rate increases, more are relying on credit cards, a new report suggests.
According to the Wall Street Journal, credit card spending was up in the third quarter at major banks, including 9% at JPMorgan Chase, the nation’s largest bank, and 15% at Wells Fargo.
Citigroup’s customers’ credit card spending was up only 2%, partly because the measure includes store credit cards, which consumers have been using less as they favor other forms of credit, the Journal said.
Meanwhile, credit-card loans, or unpaid balances on accounts, jumped nearly 16% in the quarter at JPMorgan compared with a year ago, which means consumers are taking longer to pay their bills. Delinquencies also jumped 14% at Wells Fargo and 11% at Citigroup, the Journal noted.
As CUToday.info has been reporting, credit unions have also been experiencing higher delinquencies on credit card portfolios, with NCUA flagging its concerns.
Another Potential Trouble Spot
In addition, the Journal pointed to another potentially problematic issue on which CUToday.info has been reporting.
“Some are loading up on installment loans offered by buy now, pay later players as grocery bills remain elevated and mortgage rates sit at around 7%,” the Journal added.
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