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Seriously overdue credit card debt is on the rise, with the highest level in more than a decade. According to the Federal Reserve Bank of New York, the share of credit card debt that’s severely delinquent, defined as being more than 90 days overdue, rose to 10.7% in the first quarter of 2024, up from 8.2% a year ago.

Younger people, specifically those 35 and under, are struggling the most to pay their bills. This trend is concerning as it indicates a growing financial burden on a demographic that is already facing economic challenges.

Experts advise those at risk of delinquency to seek help from nonprofit credit counselors and negotiate with creditors directly. Most credit card companies and lenders have hardship programs that can provide assistance in managing debt.

It’s crucial for borrowers to know their credit score and stay on top of payments to avoid additional interest on revolving balances. The average annual interest rate on new credit cards is currently 24.71%, the highest since tracking began in 2019.

In addition to the increase in credit card delinquencies, retail spending has stalled, with major companies like Walmart, Starbucks, and McDonald’s adjusting their sales expectations due to changing consumer behavior.

Overall, the rise in seriously overdue credit card debt highlights the importance of financial literacy and responsible borrowing practices to avoid falling into a cycle of debt.