Younger borrowers closing delinquency gap

They still trail elders in expectation of missing payments, but say they're improving

Younger people say their odds of missing a debt payment are dropping. But they still have the highest chance of going delinquent on their debt -- much higher than people at retirement age, a new survey by the Federal Reserve Bank of New York shows.

The reserve bank's Survey of Consumer Expectations asked people their odds of missing a minimum debt payment within the next three months. In October, people under 40 said the chances of going delinquent were about 16 percent, while the over-60 set gave their odds at just 6 percent.

However, the under-40 group wins the badge for having the most improved financial picture. Their expectations of missing a payment have fallen from about 20 percent since the survey began in 2013, a bigger drop than other groups. The monthly survey asks a panel of 1,200 people about their expectations for prices, jobs and household finances.

See related: ABA study: Card delinquency stays low

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Updated: 03-21-2019