Credit card debt

More than a quarter of Americans used a credit card to buy groceries last year and did not pay off the balance when it was due.

The credit bureau TransUnion is out with a report showing that borrowers aged 22 to 24 are carrying an average of $2,834 in credit card debt — about a quarter more than millennials in the same age range a decade ago.

Delinquencies are up, especially for people with lower incomes and multiple types of debt, according to the New York Fed.

Just before the pandemic, the New York Fed found that about 9% of people had bills that ended up in collections. Now, less than 5% do.

But what they're spending their money on is shifting.

Households feel their finances have been improving, the New York Fed says. But Americans appear to be racking up more credit card debt.

A strong labor market also means people feel more confident they'll be able to pay the debt back.

The University of Michigan's consumer sentiment index is up 40% over last year, aided by moderating inflation and job market strength.

But with interest rates high and wage growth slowing, that level of spending is becoming unsustainable.

Yanely Espinal, host of Marketplace's podcast "Financially Inclined," tells the story of taking on a financial responsibility she wasn't prepared for.