Know The Difference Minute

Balances at least 90 days delinquent are up year over year. Credit card delinquencies are rising. So are delinquencies for auto loans. 

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Welcome to the Know the Difference Minute for Tuesday, May 16th.
New retail numbers are in. Up, just a little. Maybe it’s time for most American consumers to take a pause. It’s time to pay for all that stuff. Total consumer debt hit a new high in the first quarter of 2023, pushing past $17 trillion even amid a sharp pullback in home borrowing.
The Federal Reserve Bank of New York released some sobering stats yesterday regarding debt. Balances at least 90 days delinquent are up year over year. Credit card delinquencies are rising. So are delinquencies for auto loans.
18- to 29-year-olds are farthest behind their payments. That’s troubling, especially since many haven’t been paying on student loans because of the freeze. Once those payments resume, the squeeze will be on.
The saving grace for now is the strong labor market. Imagine these conditions with high unemployment.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.