Despite consumer prices having eased in 2023, car loan and credit card delinquencies have been on the rise — continuing above pre-pandemic levels.
That comes from a new report by the Federal Reserve Bank of New York’s Center for Microeconomic Data released Tuesday (Feb. 6). The findings: even with inflation having come down, Americans are still feeling a wallet squeeze. The rise in delinquencies “signals increased financial stress, especially among younger and lower-income households,” Wilbert van der Klaauw, economic research advisor at the New York Fed, said in a press release. When it comes to car loans specifically, researcher said high interest rates may have played a role in making it harder for people to keep up with monthly payments. – Bruce Gil Read More