NEW YORK: US credit card delinquency rates were the highest on record in the fourth quarter, according to a Federal Reserve (Fed) Bank of Philadelphia report.

Almost 3.5% of card balances were at least 30 days past due as of the end of December, the Philadelphia Fed said.

That’s the highest figure in the data series going back to 2012, and up by about 30 basis points from the previous quarter. The share of debts that are 60 and 90 days late also climbed.

“Stress among cardholders was further underscored in payment behaviour, as the share of accounts making minimum payments rose 34 basis points to a series high,” according to the report.

Nominal credit card balances set a new series high and card utilisation also rose, as consumers stretched credit lines further.

Inflation-adjusted credit card balances remained below fourth-quarter 2019 levels.

The numbers signalled added pressure on US household finances amid higher costs of living. About 10% of credit card borrowers now have an account balance that exceeds US$5,200, according to the Philadelphia Fed. One-quarter of active accounts have a balance of over US$2,000 for the first time.

But, underscoring the dichotomy among consumers, about one-third of card holders pay their balance in full every month.

 - Bloomberg