Rising credit-card balances and higher rates fuel surge in delinquencies

Credit-card balances across the United States have expanded markedly, and the accompanying rise in interest rates is making it increasingly difficult for consumers to reduce what they owe. Individuals like Helena Emenalo and Bridget Clinger describe how family growth and everyday costs have led them to amass debts of $20,000 and $17,000 respectively, while younger borrowers face new pressures from “buy now, pay later” schemes.

Personal-finance commentator Beth Kobliner notes that credit-card debt among young adults has risen dramatically since 2020. Economists point to declining real disposable income and higher borrowing costs as drivers of the surge in delinquencies, which have reached a 15-year peak. The situation is compounded by high average credit-card rates, reported at about 30 percent, which many consumers find predatory.