Credit Card and Auto Loan Delinquencies on the Rise

[kittenstormer]

Originally published at: Credit Card and Auto Loan Delinquencies on the Rise | Infostormer.com

An increasing number of people are no longer bothering to pay their credit card or auto loans.

New credit card and auto loan delinquencies have surpassed pre-Covid levels, per Moody’s Investors Service.

— unusual_whales (@unusual_whales) September 22, 2023

Default rates for auto loans and credit cards continue to move higher.

Currently, default rates on auto loans are at ~3% and default rates on credit card debt are about to pass 4%.

These debt categories are particularly telling because borrowers are not locked-in to long term… pic.twitter.com/vtzte9dwOd

— The Kobeissi Letter (@KobeissiLetter) September 22, 2023

Default rate on credit card loans from small lenders has now surpassed the highs of:

– Dot Com bubble
– Financial Crisis
– Pandemic

This won’t end well pic.twitter.com/CbmCkdrNzP

— Game of Trades (@GameofTrades_) September 21, 2023

The economy is objectively not fine when the average person is a debt slave and can’t pay their debts.

I’m more and more convinced that we would be seeing all sorts of chaos if people did not have access to credit cards. People are using them to pay for almost everything now. This is not sustainable and when it ends, it will be ugly.

[ZyklonBee]

I used to wonder how these people are buying $50,000+ vehicles. They think that just because the bank lends them the $$$ that means that they can afford it. No one thinks about losing their jobs or taxes going up et… Realtors used to tell their customers to “buy the largest home that you can afford”, which means, get the biggest, most precarious mortgage possible with no margin for error. The shit is going to hit the fan then Blackrock and Vanguard will buy-up the properties at $.10 on the $1.00 and rent the homes to those who just lost them.

[Dave1163]

Unfortunately, your loan delinquencies are connected to your credit reports and if you have bad credit, you get charged huge amounts of jew interest (usury) if you want to buy a house and in some cases, you can’t rent an apartment. It mostly affects Whites.

[Bon]

People are using credit cards - up to 25% interest - to keep themselves and their families afloat.

I have a neighbor who told me he’s had to tap into his 401k to pay his mortgage.

But this is the “best economy ever,” right? And “inflation is cooling off,” right?

[Bon]

I see if affecting young people the most - my son’s friends in particular - ages 25-30, many of whom have well-paying jobs in IT - are saddled with huge student debt and a home is out of reach for many of them - preventing them from settling down and starting families (they have actually told me this).

I was able to pay off my kids’ student loans - but two people had to die for me to be able to do that. My son tells me he is the only one in his friend group who isn’t burdened by these loans - my daughter’s friend is about to graduate from medical school next year - she tells me her loan amound is around $500,000 at the moment - even on a doctor’s salary, how do you get out from under that?

Yes, I believe this is being done on purpose to winnow the White population.

[JoeG]

For the first chart, the auto load default axis is on the left side and credit card axis on the right. So the auto loan default rate is actually under 1%. The second chart shows small banks not in the top 100. I’d guess mostly people with bad credit scores use those banks where the interest rates are much higher. Someone with a good credit score could get a credit card at a major bank.

[Spahnranch69]

The economy used to be based on manufacturing, savings and investments. Now it’s based on servicing debt, reckless spending, borrowing and consooming. The situation is probably much worse than we are being told.