Logistically Speaking - Hot Sheet Week 6

Credit Card Delinquencies Surged in 2023

Credit card delinquencies surged over 50% in 2023, reaching $1.13 trillion in total debt, with a 59% jump in serious delinquency (90 days or more past due) from the end of 2022. At an annualized pace of 8.5%, this increase led to a total consumer debt of $17.5 trillion, as the New York Federal Reserve reported. Delinquencies also rose in mortgages, auto loans, and other categories, contributing to a 1.42% overall rate of debt 90 days or more past due, up from just over 1% in 2022. Despite rising delinquency levels, total debt aligns with pre-Covid-19 pandemic growth rates. Household debt increased by $212 billion in the quarter, a 1.2% quarterly rise and 3.6% annually. The surge in credit card debt and auto loans coincided with a Federal Reserve tightening cycle, raising short-term borrowing rates by 5.25 percentage points. As a result, credit card interest rates spiked from 14.5% to 21.5%. Though delinquencies are rising