Frankie Cordeira Jr. Description: Consumer debt defaults accelerating shortly after overall credit card debt crosses $1 trillion If the 2008 financial crisis was known for its millions of foreclosures the next collapse will likely be remembered for the amount of defaulted debt that occurs for consumers corporations and perhaps even major sovereign governments. And part of these debt defaults are already beginning shortly after consumer credit card debt has escalated to over $1 trillion. Two weeks ago when JPMorgan launched Q1 earnings season we noted that while the results were generally good one red flag emerged: the company's credit card charge offs rose to just shy of $1 billion the highest in four years. What we found was not pretty. According to the latest data from the S P/Experian Bankcard Default Index as of March 2017 the default rate on US credit cards had jumped to 3.31% an increase of 13% from a year ago and the highest default rate since June 2013. The bank card default rate recorded a 3.31% default rate up nine basis points from February. Auto loan defaults came in at 1.00% down five basis points from the previous month. The first mortgage default rate came in at 0.75%
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