09.14.24

Americans Are Falling behind on Their Bills — And Wall Street Is Alarmed

by: Angel Au-Yeung

Shares of consumer-lending companies fell as banking executives warned of rising delinquencies among lower-income borrowers struggling with higher interest rates and living costs. Citigroup, JPMorgan Chase and Discover Financial Services noted increased caution in spending. Mark Mason, chief financial officer at Citigroup, said that his bank has seen delinquencies picking up and more consumers carrying balances. Where there is growth in spending, he said it is driven primarily by Citi’s affluent customers. Ally Financial Chief Financial Officer Russ Hutchinson said late payments and charge-offs on auto loans were higher than expected in July and August. Borrowers at Ally “have been struggling with the cost of living and now are struggling with an employment picture that’s worse,” Hutchinson said. Approximately 9.1% of credit card balances turned delinquent over the past year, the highest rate in over a decade, according to an August report from the Federal Reserve Bank of New York.

Read the full article on The Wall Street Journal