Consumers at Breaking Point as Subprime Credit Card Delinquencies Soar
Last week, we told you about the rising level of subprime auto loan delinquencies.
Well, there is a similar thing happening in the subprime credit card market.
Is this the proverbial canary in a coal mine?
Balances more than 30-days delinquent on credit cards issued by the roughly 4,500 banks smaller than the top-100 surged to 7.05% in the fourth quarter of 2019, according to the latest data released by the Federal Reserve. That’s the highest delinquency rate in this category going all the way back to the 1980s.
But the delinquency rate for credit cards issued by the