The stats: Younger borrowers are falling further behind on their loan payments—specifically auto loans and credit card debt—compared to older cohorts, according to the Quarterly Report on Household Debt and Credit report from the Federal Reserve Bank of New York.
- Overall, debt balances in the fourth quarter grew by $394 billion—the largest nominal increase in 20 years.
- Of those borrowers with credit card debt, 3% of consumers in their 20s and 30s became more than 90 days delinquent in their repayments during the quarter, versus 1.7% of consumers in their 50s and roughly 1% of consumers in their 60s and 70s.
- The same trend is apparent in auto loans, with close to 1.5% of consumers in their 20s falling behind in loan repayments compared to less than 1% of consumers in their 40s and older.
What's slowing down repayment?