Credit card delinquencies on the rise nationwide
Several large credit card companies and banks that operate in Florida and other parts of the U.S. are reporting increased credit card delinquency rates. Levels of non-payment remain below where they were during the financial crisis of 2008 and 2009. However, banks reported increased delinquencies in July and August of 2017 after reporting decreasing non-payment levels for four consecutive months prior to that.
For August 2017, JPMorgan reported an increase in credit card delinquencies to 1.16 percent. Discover reported a 2.1 percent rate of delinquency for August and a 2 percent rate in July. Capital One said its credit card delinquency rate in August was 3.97 percent, compared with July’s rate of 3.81 percent. The rates of credit card delinquency overall for United States banks was 2.47 percent for the second quarter of 2017. According to data provided by the New York Federal Reserve, the rate was 2.2 percent for the second quarter of 2016, meaning delinquency rates increased overall year-over-year.
Lenders have been willing to take more risks with lending as the U.S. economy improves and approaches full employment levels. A senior analyst at CreditCards.com said stagnant wage growth may be partially to blame for rising delinquency rates. He said rising interest rates and consumer debts have likely contributed as well.
Household debt levels in the U.S. are nearing record highs. They passed their previous peak, reached prior to the 2008 financial crisis, earlier in 2017. Generally speaking, American consumers continue to extend mortgage and vehicle debt repayments, along with credit card debts. Individuals who are struggling to repay debts may want to schedule a meeting with a lawyer. An lawyer with experience in bankruptcy law might be able to help by examining the client’s specific circumstances and suggesting possible avenues of debt relief, such as Chapter 13 bankruptcy protection.