Credit-card delinquency rates were worst on record in Fed study

[MarkintheHV]

Credit-card delinquency rates were worst on record in Fed study (yahoo.com)

Almost 3.5% of card balances were at least 30 days past due as of the end of December, the Philadelphia Fed said. That’s the highest figure in the data series going back to 2012, and up by about 30 basis points from the previous quarter. The share of debts that are 60 and 90 days late also climbed.

They are also talking about how credit issuers are lowering credit limits on new accounts.

"The median account opened with a $3,000 limit in the fourth quarter, down from the $3,368 high in the second quarter."

Not a good sign.

[CorpCrMgr1]

@MarkintheHV  thank you for sharing.  You are correct, not good.

[pizzadude]

Wondering how this compares to the ~2008 fiscal crisises in terms of lates & defaults.   Also now interest rates are only going up so that's a factor playing into this as well. 

[Traveler101]

Given all the turmoil, inflation, delinquencies, foreclosures and repos, it is only bound to get worse. For those of us who have significantly multiple times our income in available credit, will we presumably face AA in chopping limits due to our potential exposure? Thank you for posting.

I noticed at the addition of a new cc showing on my reports, I pulled annual credit report, and saw 5 of my 7 lenders did a sp on me within about a week of new account being reported. Thankfully all my credit limits are still in tact. Gotta wonder in this environment how long it will last.

[keekers]

I get SPs from most, if not all, of the folks I have credit with on a regular basis so that wouldn't strike me as odd. I would like to think that the "belt tightening" would be around the middle to lower end of their respective risk models and leave others alone.

[MarkintheHV]

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@keekers wrote:
I would like to think that the "belt tightening" would be around the middle to lower end of their respective risk models and leave others alone.

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I certainly hope so.  I have never suffered a CLD, but, there is a first time for everyone.  That is one of the reasons (not all) I keep my herd small, hoping no one gets spooked and starts dropping my CLs. 

[Barkius]

It's good for me but then again I'm a bankruptcy attorney 😬

[EAT_SLEEP_JEEP]

I know of 2 people at least that are surviving off of their CC's. Treading water. I feel for people in that boat because we were $30k in CC debt and knocked it out in about 20 months finally at the beginning of last year. That was at the begging on issuers starting the hike towards %29.99 APR. I don't see how anyone can pay off large sums at that rate anymore.

As an aside from my experience through the years and its probably;y still very relevant know is issuers watch how much you are carrying month to month across your cards. They don't like high utilization being carried month after month. That causes them to AA and balance chase in my experience.