We’re going to talk about something that might sound a bit grown-up, but we’ll make it easy to understand. It’s about credit cards and why some people are having a tough time with them. Let’s dive in!
Growing Credit Card Problems:
You know, sometimes grown-ups use something called credit cards to buy things. But lately, it seems like more and more of them are having trouble with these special cards. It’s like when you try to juggle too many toys at once!
Credit cards What the Numbers Say:
The grown-ups at the Federal Reserve Bank of Philadelphia checked some important numbers about credit cards. They found out that more people are having a hard time paying their credit card bills on time. The numbers went up during the third quarter of the year, which is a fancy way of saying the third part of the year.
Credit cards Late Payments on the Rise:
The people who looked at the numbers found out that some grown-ups were late in paying their credit card bills. It’s like when you forget to return a borrowed toy on time. They found that 3.19% of grown-ups were a bit late (30 days late), 2.21% were even later (60 days late), and 1.52% were super late (90 days or more).
Credit cards More Grown-ups Owe Money:
Usually, when grown-ups use credit cards, they try to pay off all the money they spent. But now, more and more grown-ups are having a tough time doing that. In fact, only 33.18% of them could pay off their entire credit card bill in the third quarter. That’s the lowest it’s been in a while!
How Bad Is It?:
The people who study these things said that the situation is worse than it was before the pandemic. That’s when a lot of people got sick, and things got a bit tough for everyone. Now, it seems like some grown-ups are still struggling, especially with their credit cards.
Why Are Grown-ups Struggling?
Well, sometimes grown-ups don’t have enough money to pay for everything they need. Imagine if you wanted to buy all the toys in the store, but you only had enough money for a few. That’s a bit like what some grown-ups are facing – they have to juggle their money to make ends meet.
Banks Are Worried Too:
When grown-ups have trouble with their credit cards, the banks that give them the cards get worried. The banks noticed that more people are having problems, so they’re not giving out as much money or increasing the amount of money on the credit cards. It’s like when your parents give you fewer candies if you eat too many.
What Can Grown-ups Do?
Just like when you make a mistake, it’s important to learn from it. Grown-ups need to be careful with their money, just like you’re careful with your toys. They can try to make a plan, save money, and only buy what they really need. It’s a bit like playing a smart game with their money!
That’s the end of our little talk, pals! Remember, even grown-ups can face challenges, but learning from them is what helps everyone grow. Being smart with money is like being a superhero – you make the best choices to have a happy and fun life!