Ominous Sign: More Credit-Card Delinquencies

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. […]

Trending: Saturday Night Live Dings Obama – “Ebola Probably One of My Greatest Accomplishments!”

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


Join the conversation!

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.

Do NOT follow this link or you will be banned from the site!

Send this to a friend