Increases in credit card delinquency, found by GreenPath Financial Wellness, will likely lead to increased stress and expense for consumers-but options are available.
Farmington Hills, Michigan--(Newsfile Corp. - May 6, 2024) - Recent findings from GreenPath Financial Wellness reveal an increase in credit card delinquency rates-signaling a growing financial strain on consumers nationwide. In the first quarter of 2024, an alarming 23.5% of credit card accounts counseled by GreenPath were more than 30-days past due-an increase of 17% from the second quarter of 2023.
GreenPath's data is in line with recent surveys from the Federal Reserve and the National Foundation for Credit Counseling (NFCC). The Federal Reserve's March 2024 Survey on Consumer Expectations showed the average perceived probability of missing a minimum debt payment over the next three months has increased to 12.9%-the highest rate in four years. In the 2024 NFCC Financial Capability Survey, 1 in 3 consumers report they do not pay all of their bills on time.
"The toll of rising debt delinquency goes beyond mere numbers-it's a source of constant stress and financial burden," says Kelly Figueroa, Program Quality Assurance Specialist at GreenPath Financial Wellness. "The results are often immediate-more calls, voicemails, and other messages about overdue payments, increased interest rates on existing balances, past due fees, and the inevitable drop in credit scores."
Falling behind on payments can set off a challenging cycle that's difficult to break. While individuals may manage to cover the minimum payment for the previous month, the burden of late fees and accrued interest can become increasingly unmanageable. This cycle often leads to default and only exacerbates the financial strain for those affected.
"It is possible to break the debt cycle, but it can be difficult to do on your own," says Justin Botimer, Partner Development Manager at GreenPath Financial Wellness. "The thing we hear the most from our clients is that they wished they had called us sooner."
GreenPath's Debt Management Program has been an anchor of stability and hope for many-offering solutions that may result in halting collection efforts, waived late fees, or even bringing the account current after demonstration of successful payments.
"Every call we receive is a step toward relief and recovery," Figueroa concludes-underscoring that help is just a conversation away.
Those struggling with debt delinquency or managing their debt can find assistance and start their journey toward financial freedom by contacting GreenPath Financial Wellness at 866-648-8122 or visiting www.greenpath.com.
Contact Person:
Kathryn Ellywicz
2486722846
koleszkowicz@greenpath.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207886
