The news about a rise in minimum credit card payments above pre-COVID levels has raised concerns. Could this signal a perilous consumer credit situation?
There is understandable concern about the overall impact of the record-high uncertainty on the economy.
Adding to that uncertainty was a recent headline about the share of people making minimum credit card payments rising above pre-COVID levels.
Are we looking at a perilous consumer credit situation in 2025? Our conclusion based on the three trends shown below is no. At least not yet. We will continue to follow these trends, and others, and keep you updated.
It is true the share of minimum payments is rising above pre-COVID levels as evidenced by the chart below.
However, it is also worth noting that the share of accounts making the full payment is also rising. The trend is encouraging.
Additionally, while the delinquency rate on credit cards is up (see chart below), it is not at a problem level.
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