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Student credit cards and young credit

Younger borrowers closing delinquency gap

Summary

Younger people have higher expectations of missing a debt payment, survey finds, but they’re closing the gap

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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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Credit Card Rate Report Updated: August 5th, 2020
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