Overview

• Nearly 3.5% of credit card balances were at least 30 days past due at the end of December, marking the highest delinquency rate since records began in 2012.
• The increase in delinquencies comes amid high inflation and rising interest rates, exacerbating financial pressures on U.S. households.
• A new federal rule caps credit card late fees at $8, potentially impacting revenue for retailers relying on such fees.
• Credit card interest rates remain at a record high, with average APRs holding steady around 20.75%.
• Legislative actions could influence future credit card regulations, as Congress considers overturning the new late fee cap.