Ominous Sign: More Credit-Card Delinquencies

Joe Scudder
Written by Joe Scudder

Household debt is rising as are credit-card delinquencies. Where will this lead?

Credit-card delinquencies mean that not only is there more risk of economic damage to financial institutions, but retail will also be hit. Retailers depend on people spending money. Customers have had to use credit cards in order to make some of their purchases. Without easy credit, all of retail will be forced to adjust.

It will be a painful transition.

MarketWatch reports, “Household debt rises by $116 billion as credit-card delinquencies pile up.

Household debt rose by $116 billion, or 0.9%, to $12.96 trillion in the third quarter, the New York Fed said Tuesday. That’s the highest level in nominal terms, though not when compared to the size of the economy. […]

Flows into credit-card and auto loans delinquencies rose, with 4.6% of credit card debt 90 days or more delinquent, up from 4.4% in the second quarter, and 2.4% of auto loan debt seriously delinquent, up from 2.3%.

Read the entire MarketWatch story.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Joe Scudder

Joe Scudder

Joe Scudder is the "nom de plume" (or "nom de guerre") of a fifty-ish-year-old writer and stroke survivor. He lives in St Louis with his wife and still-at-home children. He has been a freelance writer and occasional political activist since the early nineties. He describes his politics as Tolkienesque.

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