Americans aged 40 to 59 now account for 49.9% of new consumer bankruptcies, their highest share since the first quarter of 2017, according to data from the Federal Reserve Bank of New York's Consumer Credit Panel and Equifax. Within that group, those aged 40 to 49 represent 26.8% of new bankruptcies, the largest share of any age group and their highest since the third quarter of 2015, while those aged 50 to 59 account for another 23.1%. Americans aged 70 and older now represent 21.5% of new bankruptcies, their highest proportion since the second quarter of 2017, while borrowers aged 18 to 29 account for just 5.9%, their lowest share since the second quarter of 2014. Total U.S. household debt stood at $18.771 trillion in the second quarter, with credit card balances reaching $1.263 trillion, up $54 billion from a year earlier, and 6.97% of credit card balances transitioning into serious delinquency, compared with 6.93% a year earlier. JPMorgan Chase recorded $2.5 billion in provisions for credit losses in the quarter, down from $2.8 billion a year earlier, with credit card net charge-offs at a 3.33% annualized rate, while Capital One Financial reported a net charge-off rate of 4.71% and net income of $3.0 billion, suggesting lenders are not yet seeing broad-based losses on the scale of the 2008 financial crisis.
Capital One Financial CorporationReported a 4.71% net charge-off rate and $3.0B net income, showing credit losses but no broad-based crisis-level losses.
JPMorgan Chase & CoRecorded $2.5B in credit-loss provisions, down from $2.8B a year earlier, with card net charge-offs at 3.33%.
