New York Fed: U.S. consumer loan delinquency rates remain near an eight-year high, credit card charge-off rates rise to highest level since 2011.

The latest data from the New York Fed shows that although the delinquency rate on new consumer loans in the US slowed slightly in the first quarter of 2026, the overall loan delinquency rate remains at a near-eight-year high, reflecting the ongoing pressure on American households' finances from high interest rates and rising living costs. According to the quarterly report on household debt and credit released by the Federal Reserve Bank of New York on Tuesday, as of the first quarter of 2026, the proportion of consumer loans at least 30 days overdue in the US remained at 4.8%, the same as the previous quarter, ending a trend of continuous increase over the previous six quarters. However, this level is still the highest since 2017. The report shows that apart from auto loans and home equity line of credit (HELOC), delinquency rates for most loan categories have slightly declined. Among these, student loan pressure remains significant. In the first quarter, 11% of student loans entered early delinquency status, although this was an improvement from the level of 16% in the fourth quarter of 2025, the overall default rate continues to rise. Data shows that the proportion of student loans in the US that are delinquent for over 90 days has risen to the highest level since the beginning of 2020. Previously, the US government's policy of suspending repayment of student loans during the COVID-19 pandemic for several years resulted in a significant increase in defaults. Researchers at the New York Fed pointed out that the borrowers entering the default stage of student loans today have an average age close to 40, and most of them did not have severe delinquency records before the pandemic, and are more likely to reside in the southern regions of the US. Researchers said that although student loan defaulters are more likely to also default on other debts, the overall scale of student loan defaults is still relatively limited, so concerns about the wider credit risk contagion are "premature". Meanwhile, the problem of credit card delinquencies continues to worsen. The report shows that the proportion of US credit card delinquencies over 90 days has increased further since the beginning of the year, reaching the highest level since 2011. Overall, the growth rate of serious delinquent loans in the US (over 90 days delinquent) has slowed, but consumer debt pressure remains evident. Data shows that total household debt in the US increased by $180 billion in the first quarter, reaching $18.8 trillion. Analysts point out that against the backdrop of soaring energy prices, the Fed may maintain high interest rates for longer than previously expected, further exacerbating the pressure on residents to repay debts. The Fed kept its benchmark interest rate unchanged last month and noted that the uncertainty in the US economic outlook has increased due to the war in Iran. At the same time, the US April inflation rate reached 3.8% year-on-year, the fastest pace since 2023. More and more Fed officials are beginning to mention the phenomenon of "K-shaped differentiation" in the US economy, where high-income households maintain consumption and economic resilience, while middle and low-income groups are experiencing increasing financial pressure. New York Fed President Williams said last week that there is now "strong evidence" showing clear "K-shaped economic" characteristics in the US economy. Recent research shows that since 2023, almost all real consumption growth in the US has come from high-income households.