The news: Serious delinquency rates held steady YoY, while credit card volume growth continued to slow, per a report from the Federal Reserve Bank of New York.

• 90-day delinquency rates decreased from 7.18% in Q2 2024 to 6.93% in Q2 2025.
• Total credit card debt rose to $1.209 trillion, growing 5.9% YoY—a sharp slowdown from 10.8% a year ago and more in line with pre-pandemic levels. 

What this means: Declining 90-day delinquency rates suggest that consumer financial health, while fragile, is on the mend, mirroring data from VantageScore’s Credit Gauge.

Brittle progress: While credit card delinquencies trended in a positive direction, the surge of student loan delinquencies is poised to be crippling.

• Outstanding student loan debt hit $1.64 trillion in Q2 2025.
• The flow into serious delinquency shot up 12 percentage points YoY to 12.88% as credit bureaus resumed reporting student loan defaults.

Our take: As middle-class educated professionals are slapped with resumed student loan payments, many will falter in the face of reaccelerating inflation and a weakening job market—especially if faced with possible wage garnishment. 

As a result, we could see a reversal of improving credit card debt trends, as consumers struggle to manage existing debts amid mounting financial pressures.