Consumers Have Higher Credit Card Balances and Face Higher Interest Rates 

Banks are noting increases in both credit card balances and the proportion of people only making minimum payments. These findings are likely due to inflationary pressures and rising credit card interest rates. The Federal Reserve Bank of Philadelphia found that credit card balances peaked in the third quarter of 2024 at $645.25 billion, the highest since 2012. While this has resulted in increased interest income for banks, banks are also experiencing a rise in credit card delinquency rates.  

Read More