Credit Card and Auto Loan Delinquencies on the Rise
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
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.