NEW YORK—A new analysis of consumers’ credit data reveals growing concerns around delinquencies.
PYMNTS Intelligence recently noted that three-quarters of consumers have card debt, and the percentage skews higher for cardholders who state they live paycheck to paycheck.
And as for how those same consumers are keeping up with their payments:
The share of consumers who paid all of the monthly balance due stood at about 55% at the end of last year, which is slightly better than the roughly 52% seen during the summer. But the share of consumers paying only the minimum amount due ticked up, to 12.9% into December, PYMNTS said.
“At the same time, we’ve seen the percentages of those cardholders paying ‘most’ or ‘half’ of the monthly balance decline a bit. The share of those paying none of what’s owned was indicated at about 3.3% at the end of the year, continuing a bit of a lumpy trend through the past few months, but above the 1.9% that had been measured in April,” PYMNTS explained.
Separately, in aggregate fashion, the St. Louis Federal Reserve has estimated that as of the end of the third quarter, delinquency rates on credit card loans, as measured across all commercial banks was 3.3%, up from 2.1% that had marked the third quarter of 2022, PYMNTS said.
PYMNTS added that the latest reported data from the Fed shows charge-off rates on cards was north of 4.6%, “leagues above the 1.7% at the beginning of 2022,” PYMNTS added.