U.S. Credit Card Anxiety Hits Pandemic-Era High as Debt Concerns Mount


Last updated: October 16, 2024

Americans are feeling fairly secure in their jobs, confident in their spending power, and not overly concerned about rising inflation, according to the latest survey from the Federal Reserve Bank of New York.

However, behind this sense of stability, many are increasingly anxious about mounting credit card debt.

Debt balances are growing, and concerns about missing payments are at their highest level since April 2020.

The New York Fed’s September 2024 Survey of Consumer Expectations revealed that the perceived probability of missing a minimum payment in the next three months rose for the fourth straight month to 14.2%.

Outside of the pandemic, it’s the highest delinquency concern since early 2017.

This paints a stark picture of the current U.S. economy, where on the surface, things seem solid, but many consumers are grappling with financial strain.

Ted Rossman, senior industry analyst at Bankrate, noted that “inflation is still a big deal; even though it’s come down, I feel that’s still the dominant theme in the economy.

Inflation is gobbling up a lot of the gains people are making. So, even if you’re working, and even if your wages are up, a lot of people are not feeling good about things.”

Lower-income Americans are bearing the brunt of this pressure.

While delinquency fears did rise last month for those earning over $100,000 (up to 8.4%), those making under $50,000 are significantly more worried, with a 20% chance of missing payments.

For wealthier households, credit card usage remains a tool for rewards and convenience.

But for many others, it’s a burden with long-term consequences.

Since 2005, inflation has hit lower-income families hardest, with prices rising 64% for the lowest earners, compared to 57% for the wealthiest, according to data from the Minneapolis Fed.

In short, the economic divide is widening, and credit card debt is becoming a heavier load for many Americans to bear.

This growing divide has significant implications for both personal finances and the broader business landscape, as spending patterns shift across income groups.

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Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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