Hard Times Fall for 6-Figure Earners, Too

A growing number of high-income Americans—those earning more than $150,000 annually—are starting to fall behind on credit card and auto loan payments, according to new data from credit-scoring firm VantageScore. Delinquency rates for these households have more than doubled since 2023, outpacing the increases seen among middle- and lower-income groups, per CBS News. Though the overall rate for high-income earners remains low at 0.34%, compared to 1.75% for low-income households, the spike in that demographic has risen faster than for the other groups.

VantageScore notes that auto loan delinquencies have shown the greatest jump across credit products. Bloomberg, meanwhile, cites a recent study from the Federal Reserve Bank of St. Louis that shows the share of individuals running late on their credit card payments in the highest-income ZIP codes has risen two times as high over the past year as those in the lowest-income ZIP codes. VantageScore chief economist Rikard Bandebo points to a cooling job market and higher housing costs as driving factors for the upper echelon's money woes.

"For white-collar workers, it's probably tougher than it has been," Bandebo told CBS MoneyWatch, noting that the trend shows no sign of slowing. The number of new jobs that pay above-average wages has dropped sharply—now making up just 7% of new positions, down from 38% before the pandemic. That means job loss for high earners may be riskier, with fewer replacement options available.

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While lower- and middle-income groups still face greater financial strain overall, the acceleration in delinquencies among top earners raises broader economic concerns. Spending by wealthier Americans now accounts for about half of all consumer spending, a jump from one-third in 1990, making their financial health a key factor for the economy. Meanwhile, tighter budgets are spreading across income brackets. Three-quarters of middle-income Americans say they're cutting non-essential spending, while one-third report increased credit card usage. Retailers like Procter & Gamble are noting more cautious buying habits.