Young Americans continued to make the largest share of those who switch to credit card delinquency in the second quarter, according to a report released by the New York Federal Reserve.
Despite the fact that they were somewhat set off compared to the previous quarter, the report showed that nearly 10% of the credit card balance by Americans aged 18-29 in the second quarter was 90 or more days late.
New York Fed researchers said that the delinquency rates for the credit card for Americans are “unusually raised”, adding that they keep the trend “closely”.
The percentage of balance that switches to severe delinquency for 18-29 year olds has been floating around 10%since 2023. Before the last time the speed was 10% overestimated in 2010.
The credit card and the debts of Americans always reach high
Gen Z is confronted with increasing financial pressure. (Istock / Istock)
The report comes after data has painted an increasingly awesome picture of the financial security of members of Gen Z. A separate report from the New York Fed showed that the unemployment rate for recent graduates from 22-27 years old was from post-Pandemic lows and 0.7% higher than the national rate from June.
Excluding the Pandemie, the unemployment rate for recent graduates in March 2025 was the highest in more than a decade.
In the meantime, data shows that members of Gen Z are increasingly becoming thin by both new and traditional credit services. A Bank of America Institute report from June 2025 showed that “now, pay later” (BNPL) use accelerated among members of Gen Z in the last year after three years of delay.
What would be the impact of a credit card rente cap?
A pile of credit cards. (Istock / Istock)
Although most of the BNPL lenders do not report payments to credit agencies, in New York FED researchers said that the use of BNPL was much higher with younger borrowers compared to those in other age groups. Affirm has started reporting payment history to experiment and transunion.
Researchers said their findings suggest that typical BNPL purchases were quite small, ranging from $ 600 to $ 1,000, although “from what we hear … Now it is being extended to even smaller purchases, such as even a cup of coffee.”
Get Fox Business on the Go by clicking here
From the second quarter of 2025, the credit card balance of Americans amounted to $ 1.21 trillion.
