AI Summary
5 min readThe New York Federal Reserve’s latest quarterly report on household debt and credit landed with a stark finding: credit card delinquencies have climbed to their highest level since the Great Recession. Roughly 13% of all credit card balances are now 90 days or more overdue. That number is not a sudden spike—it reflects debts that many households fell into after pandemic-era support programs expired and never managed to climb out of.
The delinquency hangover
The early pandemic was an oddly good time for many families financially, thanks to stimulus payments and expanded unemployment benefits. But when those programs ended, the environment turned much harder. “They saw a rapid increase in the price of goods such as food, housing, and transportation,” said Josh Bivens of the Economic Policy Institute. “And we saw a rapid increase in the number of people falling behind on their credit card payments.”
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What you'll learn
- 1 (01:14) **Kyla Scanlon on a Confusing Economy** - Kai Riznal brings back economics content creator Kyla Scanlon to take stock of the current economy.
- 2 (02:48) **Young People's 'Financial Nihilism' Explained** - Scanlon explains why younger generations are spending on "little treats" and avoiding traditional milestones.
- 3 (07:18) **Home Equity Lines of Credit Surge** - The New York Fed's quarterly report shows household debt fell overall, but home equity lines of credit (HELOCs) are rising sharply.
- 4 (09:57) **Credit Card Delinquencies Hit Post-Great Recession High** - About 13% of credit card balances are 90+ days overdue, the highest level since the Great Recession.
- 5 (13:01) **Market Numbers and Housing Data** - A quick look at the day's market closes and existing home sales.
- 6 (15:25) **Evan Osnos on China's Quieter, Tech-Driven Economy** - New Yorker staff writer reports from Beijing on China's strategic pivot to technology.
- 7 (17:47) **China's Tech Rise and America's Waning Influence** - Osnos discusses whether China's technological achievements clear a path for its global rise.
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Guests on this episode
Show Notes
Credit card delinquencies are sitting at 13% so far this year. It’s the highest national rate since the tail-end of the Great Recession. The aftermath of the COVID-19 pandemic, including high inflation and job uncertainty, is partially to blame. Also in this episode: Home equity lines of credit become more popular as traditional borrowing rates climb, small business owners are cautious but optimistic — and trying to hire — and Kyla Scanlon explains economic nihilism.
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Read the stories in today’s episode:
- Younger consumers are turning to "little treats" in the face of economic nihilism
- Why lines of credit have become a preferred piggy bank for homeowners
- Credit card delinquencies approach Great Recession levels
- China is shaping the technology of the future. Where does that leave the U.S.?
- Small business owners are feeling uncertain but optimistic
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