Credit card debt and delinquencies hit a new record in Q2 2024.
According to the latest report from the New York Federal Reserve, Americans now owe a staggering $1.14 trillion on their credit cards – a 2.4% increase from the previous quarter and a 48% increase since the first quarter of 2021.
Delinquency rates are also climbing, with 9.1% of credit card balances falling into delinquency over the past year.
The New York Fed’s report highlights those aged 30 to 39 as significantly more likely to fall into serious delinquency than any other age group.
Researchers agree the driving force behind this credit card debt is a perfect storm of the current high cost of living squeezing budgets tighter than ever, and high interest rates making it more challenging for people to pay down their balances.
Interestingly, a recent Bankrate survey reveals a different side of this story: 38% of Americans are willing to take on more debt to enjoy life, be it through travel, dining out, or attending live entertainment.
As a property manager, these trends could have a direct impact on your business. With tenants feeling the pinch from every direction, late or missed rent payments could become more common. If you haven’t already noticed an increase in delinquency, it’s wise to prepare for it. Sending out more payment reminders may become necessary, and automating these reminders with tools like PayProp could be a smart move to ensure timely rent collection without straining your resources.
More renter behavior headlines
Nearly a quarter of Millennials rely on their parents to pay for rent – NASDAQ
More renters in it for the long haul than a decade ago – PayProp blog
Co-living trend helps renters save hundreds monthly – FOX 26 Houston
