The American Psychological Association, using newly released data from WalletHub, notes that New Jersey ranks sixth in the nation among states where credit card delinquency is rising quickly. Comparing credit card delinquency in the third quarter of 2023 to 2024, the data show the Garden State with 41% more cards delinquent in 2024. A full 23% of issued cards were delinquent in 2024.

Liberty Street Economics says that credit card delinquencies have risen past pre-pandemic levels. It also said: “While borrowers who were current on all their cards in the first quarter of 2024 had a median utilization rate of 13 percent in the previous quarter, those who became newly delinquent had a median rate of 90 percent.” They argue that such actions often indicate a growing cash flow situation that could be related to income loss.

Why New Jersey is seeing a rise in credit card delinquency is not clear, but the trend is alarming when seen in the context of growth in overall household debt.

According to the Federal Reserve of New York, total household debt rose to $17.94 trillion in the third quarter of 2024 with delinquency rates elevated. Credit card balances increased by $24 billion in the quarter, hitting a total of $1.17 trillion.

The fed said that “elevated balance levels continue to reveal stress for many households.” According to the Financial Times, during the first nine months of 2024, lenders wrote off more than $46 billion in delinquent credit card debt.

Mortgage debt is the largest single component of household debt. The Mortgage Bankers Association says mortgage delinquencies decreased slightly in the third quarter of 2024 but remained up on an annual basis.

Contact the reporter, Vince Conti, at vconti@cmcherald.com.