Gen Z Is Charging Too Much, And Not Paying Bills: What The Latest Credit Card Delinquency Data Says About American Consumers
Portfolio Pulse from Hayden Buckfire
The New York Fed's latest report highlights rising credit card delinquency rates, particularly among Gen Z consumers. High utilization rates and enduring inflation are contributing factors. This trend poses challenges for credit card companies like American Express, Visa, Capital One, and Mastercard, as well as financial institutions such as J.P. Morgan Chase and Citigroup.
May 17, 2024 | 7:20 pm
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American Express may face increased provisions for credit losses due to rising credit card delinquency rates, particularly among Gen Z consumers.
Rising delinquency rates among Gen Z consumers will likely lead to higher provisions for credit losses for American Express, negatively impacting its financial performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Citigroup may face challenges due to rising credit card delinquency rates, particularly among Gen Z consumers.
Higher delinquency rates among Gen Z consumers will likely lead to increased provisions for credit losses for Citigroup, negatively impacting its financial performance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Capital One Financial may see increased provisions for credit losses due to rising credit card delinquency rates among Gen Z consumers.
Higher delinquency rates among Gen Z consumers will likely lead to increased provisions for credit losses for Capital One Financial, negatively impacting its financial performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
J.P. Morgan Chase may face challenges due to rising credit card delinquency rates, particularly among Gen Z consumers.
Rising delinquency rates among Gen Z consumers will likely lead to higher provisions for credit losses for J.P. Morgan Chase, negatively impacting its financial performance.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Mastercard is likely to experience increased credit losses due to higher delinquency rates, especially among Gen Z consumers.
The rise in delinquency rates among Gen Z consumers will likely result in higher credit losses for Mastercard, affecting its financial health.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Visa is likely to experience increased credit losses due to higher delinquency rates, especially among Gen Z consumers.
The rise in delinquency rates among Gen Z consumers will likely result in higher credit losses for Visa, affecting its financial health.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80