NEW YORK—With credit card debt and delinquencies rising, many Americans are struggling with their finances, and a new report reveals younger consumers are struggling the most.
With limited financial resources, lower wages and shorter credit histories, young adults are struggling to manage high-interest debt more than other age group, stated CNBC, citing a new report by Urban Institute.
Nearly one-in-five adults between the ages 18 and 24 with a credit record in the U.S. currently have debt in collections, the report noted.
“Overall, credit card balances are surging, up 15% in the most recent quarter, the largest annual jump in more than 20 years,” CNBC reported. “At the same time, credit card rates are now over 19%, on average, an all-time high, and still rising. But for new applicants for credit, APRs are typically even higher, as much as 30%.”