{"id":2009563,"date":"2023-08-23T15:46:04","date_gmt":"2023-08-23T19:46:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/headwinds-coming-for-consumers-as-credit-card-delinquencies-jump-macys-says\/"},"modified":"2023-08-23T15:48:23","modified_gmt":"2023-08-23T19:48:23","slug":"headwinds-coming-for-consumers-as-credit-card-delinquencies-jump-macys-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/headwinds-coming-for-consumers-as-credit-card-delinquencies-jump-macys-says\/","title":{"rendered":"Macy&#8217;s warns of consumer challenges as credit card delinquencies rise."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fheadwinds-coming-for-consumers-as-credit-card-delinquencies-jump-macys-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2009563&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>Macy&#8217;s Warns of Rising\u200b Credit Card Delinquencies and Financial Pressure on American Consumers<\/h2>\n<p>Macy&#8217;s has \u200crecently reported a sharp increase\u200b in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-complains-struggling-americans-just-dont-get-how-great-the-economy-is\/\" title=\"Biden Complains Struggling Americans Just Don\u2019t Get How Great the Economy Is\">credit card delinquencies<\/a> among\u200b its customers, signaling a\u200d rough patch for \u200bAmerican consumers. Adrian Mitchell, Macy&#8217;s \u2064chief operating officer and chief\u2064 financial officer, expressed concerns about \u200dthe financial pressure \u2062consumers are\u200d facing as the \u2062Federal Reserve tries to\u2062 combat\u2063 high inflation by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest rates<\/a>. The unexpected acceleration of credit card delinquencies among Macy&#8217;s customers has raised alarms.<\/p>\n<blockquote>\n<h3>Related \u200bStories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/americans-finding-it-difficult-to-pay-credit-card-dues-on-time-as-delinquency-rises-amid-all-time-high-interest-rates-4974877\">Americans \u2062Finding It Difficult to Pay Credit\u2063 Card Dues on Time, as Delinquency Rises Amid All-Time-High Interest Rates<\/a><br \/>\n        <span class=\"text-comp-caption\">1\/10\/2023<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/opinion\/credit-card-debt-hits-1-trillion-5454359\">Credit Card\u2062 Debt\u2062 Hits $1 Trillion<\/a><br \/>\n        <span class=\"text-comp-caption\">8\/9\/2023<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>&#8220;While \u200dwe had expected delinquencies to rise as part of our \u2064normalizing \u200ccredit environment, the speed\u200b at \u2064which the increase occurred\u200b for \u2062us and the\u200d broader \u2064credit card industry since our first-quarter earnings call was faster than planned,&#8221; \u200dsaid Mr. Mitchell, acknowledging the negative impact on Macy&#8217;s \u200bsecond-quarter results and the anticipated rise in bad debt.<\/p>\n<p>Macy&#8217;s CEO, Jeff Gennette, echoed these concerns, stating that Macy&#8217;s customers,\u2062 especially those\u200d with incomes of $75,000 or less, are facing increasing financial \u2064strain. He highlighted the expiration of student loan forgiveness and the looming end of the federal \u200crepayment \u200bpause on student debt as potential \u200cheadwinds.<\/p>\n<div style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>Shoppers\u200b walk into a Macy&#8217;s department store at Miami International \u2064Mall in Doral, Fla., on\u2064 Feb. 22, 2021. (Wilfredo Lee\/AP\u2063 Photo)<\/figcaption><\/figure>\n<\/p><\/div>\n<h2>&#8216;Increased Rate\u2062 of Delinquencies&#8217;<\/h2>\n<p>During the earnings\u200b call, Mr. Mitchell\u200d revealed that credit card revenues declined \u200cby $84 million year over \u200dyear in the second quarter, primarily \u200ddue to more customers failing to \u200cpay off their credit card debt. He expressed confidence in the long-term outlook but acknowledged the need for caution in the near term.<\/p>\n<p>Macy&#8217;s is taking steps to\u2064 mitigate the risk \u2062of rising delinquencies by \u200bworking with its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-citigroup-will-cover-employees-travel-costs-to-obtain-abortions\/\" title=\"Report: Citigroup Will Cover Employees' Travel Costs to Obtain Abortions\">credit card partner<\/a>, Citibank, to target higher-risk segments and reduce exposure. However, Mr. Mitchell emphasized\u2063 that there are external factors beyond \u200dtheir control, such as student\u200b loans, auto \u2062loans, and mortgages, which could further impact consumer finances.<\/p>\n<p>The warning\u200d from Macy&#8217;s comes as household borrowing in the United States has surpassed $17 trillion, with Americans inching closer to a debt-level &#8220;breaking point.&#8221;<\/p>\n<h2>Debt-Level &#8216;Breaking Point&#8217;<\/h2>\n<p>According\u200b to a study\u2064 by WalletHub, \u2064the average American\u2062 household is now just over\u200c $14,000 away from \u2062reaching a &#8220;breaking point&#8221; where they can no longer afford to pay off their loans. The Federal Reserve Bank of New York reported a slight increase in \u2062overall \u200dhousehold debt in the second quarter, driven by a surge in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/headwinds-coming-for-consumers-as-credit-card-delinquencies-jump-macys-says\/\" title=\"Macy's warns of consumer challenges as credit card delinquencies rise.\">credit\u2063 card balances exceeding\u200d  trillion<\/a>.<\/p>\n<p>WalletHub analyst Jill Gonzalez\u2063 explained\u2064 that the breaking point is determined by factors\u2063 such as \u2062the \u200bdebt-to-income\u200c ratio, \u200cdisposable income, interest \u2063payments, \u2062and credit utilization. She warned\u2062 that the average household is\u200b approaching a critical threshold and may face difficulties in managing their\u200b debt.<\/p>\n<h2>Credit Card Delinquencies Rise<\/h2>\n<p>Recent data from the New \u200dYork Fed shows that credit card delinquencies are at \u200can 11-year high. While the quarter-to-quarter trend appears \u200cless alarming, experts\u200c remain cautious about the overall impact on the economy.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Macy&#8217;s warns of rising credit card delinquencies, indicating a tough period for American consumers. Adrian Mitchell, Macy&#8217;s COO and CFO, predicts more challenges ahead during an earnings call on Aug. 22.<\/p>\n","protected":false},"author":118,"featured_media":2009564,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2009563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2009563"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2009564"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2009563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2009563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2009563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}