Credit Card Delinquencies Tick Up At Discover, Capital One: Total Household Debt Hovers Just Below $18 Trillion

Americans are racking up debt and having a difficult time paying it off.

The 30 or more day delinquency rate for Discover Financial Services DFS ticked up slightly in October from 3.84% to 3.87%. This is slightly lower than the Riverwoods, Illinois-based company’s yearly high of 4.02% in January.

Rates are slightly higher at Capital One Financial Corp. COF, ending the month at 4.61%, slightly higher than September’s 4.53%.

American Express Corp AXP is known for its wealthier consumer base. The New York, New York-based company has not yet released delinquency data for October, but its 30+ day rate stood at 1.4% in September.

Higher delinquency rates can lead to increased provisions for credit losses and tighter lending standards.

Delinquency on the Rise: The Federal Bank of New York released its quarterly debt report on Wednesday.

The report found that total household debt increased by $147 billion to $17.94 trillion in 2024’s third quarter. Credit card balances increased by $24 billion to $1.17 trillion, 8.1% higher than it was a year ago.

Credit card delinquency rates improved slightly overall, with 8.8% of balances transitioning to delinquency compared to 9.1% last quarter.

The percentage of credit card debt 90 or more days delinquent has risen faster than any other debt type in 2024.

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