Consumers Are Missing More Credit Card Payments. Here is the data.
While there are a number of factors that contribute to missing a credit card payment or two, the recent data from TransUnion shows a clear correlation between the rise in delinquencies and a trend among a number of credit card issuers. Subprime lending – the practice of offering revolving credit accounts to less than well-qualified borrowers – is partly to blame.
However, in 2014 as the broad market showed signs of steady growth, a surge in credit card offers to subprime consumers took place. According to the Wall Street Journal, more than 20 million credit cards were issued to subprime borrowers in 2015 alone. This represented a 20% increase from 2014 and a 56% increase from 2013. The reason? The subprime market is a profitable endeavor.
DYI: U.S. economy has been growing(little there was) since March of 2009 and here we stand with the new year of 2017. The economy has been moving ahead for 8 years without a recession; this makes us overdue for the next "hick up" an economy contracting. As much as our politicians would like us to believe they have NOT done away with the business cycle. The article above is a telltale sign signifying the beginning of the end for growth. I'm not making a recessionary call - as we have danced on the head of a pin between growth and recession for years - only signs pointing to more of the end than beginning. Admittedly, this is a case of the obvious, we are 8 years into growth so common sense would tell you we are more towards the end than the beginning.
DYI
No comments:
Post a Comment