NEW YORK—Americans with credit card debt won’t see relief when it comes to the rates they are paying even after the Federal Reserve opted against hiking its benchmark rate, one new report is suggesting.
“Their situation may even get a bit worse next year, at least temporarily,” Yahoo Finance predicted.
Why would that be the case?
“For one, as interest rates have risen over the past two years, some cardholders have been having a harder time paying off their debts,” Yahoo Finance said, answering its own question. “The delinquency rate on credit cards reached 2.98% in the third quarter, up from 2.77% the previous quarter, according to the Fed.”
Yahoo Finance noted it also the highest level since 2012, when it was 2.92%. As CUToday.info has also reported, credit unions have been seeing a similar increase in delinquencies on their own portfolios.
‘Struggling With Debt’
“And with the federal pause on student loans having ended this year, more folks are struggling to keep up with their debts. According to the Department of Education, nearly nine million borrowers missed their first student loan payment,” Yahoo Finance said.
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