Credit card delinquency rates have leveled off after climbing steadily for two years, offering a tentative signal that consumer financial stress may be stabilizing. The 90-day delinquency rate held at 2.8 percent in the most recent quarter.
Economists note that wage growth continuing to outpace inflation is helping consumers manage their debt loads. However, total outstanding credit card balances remain near record highs at $1.15 trillion.
Banks are cautiously maintaining their lending standards rather than loosening them, suggesting that lenders remain watchful despite the improving trend in payment behavior.
