{"id":8977,"date":"2023-05-15T13:15:28","date_gmt":"2023-05-15T17:15:28","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/credit-card-debt-failed-to-decline-in-first-quarter-for-first-time-in-over-20-years-new-york-fed-says\/"},"modified":"2023-05-15T13:15:29","modified_gmt":"2023-05-15T17:15:29","slug":"credit-card-debt-failed-to-decline-in-first-quarter-for-first-time-in-over-20-years-new-york-fed-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=8977","title":{"rendered":"Credit-card debt failed to decline in first quarter \u2014 for first time in over 20 years, New York Fed says"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0002054901\" role=\"document\">\n<p>U.S. credit-card debt appears to be stubbornly, holding near $1 trillion, the Federal Reserve Bank of New York said in its quarterly report on household debt and credit Monday.\u00a0<\/p>\n<p>In the fourth quarter, when credit-card debt tends to rise due to the holiday shopping, credit-card balances hit a whopping $986 billion, surpassing pre-pandemic levels, the\u00a0New York Fed said in a previous report.\u00a0<\/p>\n<div class=\"paywall\">\n<p>The first quarter, however, is usually marked by falling credit-card debt levels as consumers pay that off. But that wasn\u2019t the case in 2023: credit-card balances held firm at $986 billion, the New York Fed said Monday.<\/p>\n<p>It was the first time credit-card debt levels had failed to fall between the fourth and first quarter in more than 20 years, New York Fed researchers said. \u00a0<\/p>\n<p>At the same time, credit-card interest rates are also on the rise, according to Bankrate data. The average credit-card interest rate is currently at a record high of\u00a020.33%, making it more expensive for consumers to carry debt. <\/p>\n<p>Interest rates can also vary by consumers\u2019 credit scores, skewing higher for borrowers who are considered more \u201crisky.\u201d Young adults in communities of color are\u00a0more likely to be in debt compared\u00a0to their counterparts in majority-white communities\u00a0and more likely to have lower credit scores.\u00a0<\/p>\n<p>Still, on the whole, total U.S. household debt balances were up by $148 billion in the first quarter to reach $17.05 trillion, New York Fed researchers said \u2014 a slightly more muted increase compared to previous quarters, considering last year\u2019s fourth and third quarters saw total debt levels rise\u00a0$394 billion\u00a0and\u00a0$351 billion, respectively.\u00a0<\/p>\n<p>One factor driving the more modest rise in debt levels: The first quarter had the lowest level of mortgage originations, including refinances, since 2014, reaching a level of $324 billion. In a blog post Monday, New York Fed researchers noted that a \u201cpandemic boom\u201d in refinancing, supported by lower interest rates and stronger household balance sheets, appeared to be over, though the 14 million mortgages refinanced earlier in the pandemic will \u201chave effects on the mortgage market for years to come.\u201d\u00a0<\/p>\n<p>\u201cThe improved cash flow generated by the recent refinance boom will potentially provide significant support to future consumption,\u201d the New York Fed researchers wrote.<\/p>\n<p>Meanwhile, delinquency rates, while up slightly, also remained low in the first quarter despite rising debt levels. New foreclosures are also still low.\u00a0<\/p>\n<p>\u201cThe delinquency transition rate for credit cards and auto loans increased by 0.6 and 0.2 percentage points, respectively approaching or surpassing their pre-pandemic levels,\u201d the New York Fed said in a statement Monday.\u00a0<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/credit-card-debt-failed-to-decline-in-first-quarter-for-first-time-in-over-20-years-new-york-fed-says-5f097ec6?mod=personal-finance\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. credit-card debt appears to be stubbornly, holding near $1 trillion, the Federal Reserve Bank of New York said in its quarterly report on household debt and credit Monday.\u00a0 In the fourth quarter, when credit-card debt tends to rise due to the holiday shopping, credit-card balances hit a whopping $986 billion, surpassing pre-pandemic levels, the\u00a0New [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8978,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-8977","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit-card debt failed to decline in first quarter \u2014 for first time in over 20 years, New York Fed says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"U.S. credit-card debt appears to be stubbornly, holding near $1 trillion, the Federal Reserve Bank of New York said in its quarterly report on household\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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