Consumer Credit Concerns Mount as Late Payments Climb

Are the days of credit card users boosting the U.S. economy at an end?

Share prices for four of the biggest credit card lenders — American Express, Discover, Capital One and Synchrony — are down an average of about 12% for the year, compared to a 4.5% drop in the overall S&P 500, The Wall Street Journal reported Tuesday (March 11).

Americans’ inflation-adjusted debt has stretched beyond pre-pandemic levels, with the average household’s credit card debt surpassing $10,000 during the closing quarter of 2024. It’s the first time that figure has been reached since 2009, and it’s concerning investors, the report said.

There are also concerns about rising delinquency rates, especially among high-income consumers. Between January 2023 and January 2025, late debt payments from people earning at least $150,000 per year more than doubled, according to the report.

While those late payments account for a fraction of all outstanding balances, the increase outpaces upticks in late payments among middle- and low-income consumers, the report said.

“We’re seeing heightened credit stress among high-income consumers,” VantageScore Chief Strategy Officer and Chief Economist Rikard Bandebo said, per the report, adding that the stresses are more pronounced for consumers without nest eggs.

February data from the Federal Reserve Bank of New York showed that 11.35% of credit cards are more than 90 days overdue, a 17% jump from the previous year. These delinquency levels haven’t been seen since the fourth quarter of 2011.

Meanwhile, the New York Fed warned of a decline in sentiment among consumers about their financial futures, following the release of the bank’s monthly consumer expectations survey.

“Perceptions about households’ current financial situations compared to a year ago were mostly unchanged, but year-ahead expectations about households’ financial situations deteriorated considerably,” the Fed said this week. “The share of households expecting a worse financial situation in one year from now rose to 27.4%, the highest level since November 2023.”

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