Two weeks ago, when JPMorgan launched Q1 earnings season, we noted that while the results were generally good, one red flag emerged: the company's credit card charge offs rose to just shy of $1 billion, the highest in four years.
It wasn't just JPM: all other money-center banks reported similar trends, so we decided to look into it.
What we found was not pretty. According to the latest data from the S&P/Experian Bankcard Default Index, as of March 2017, the default rate on US credit cards had jumped to 3.31%, an increase of 13% from a year ago, and the highest default rate since June 2013.
This is how S&P/Experian explained the recent 5 consecutive month surge in bank card default rates:
The bank card default rate recorded a 3.31% default rate, up nine basis points from February. Auto loan defaults came in at 1.00%, down five basis points from the previous month. The first mortgage default rate came in at 0.75%, up one basis point from February and reaching a one-year high.
The National bank card default rate of 3.31% in March sets a 45-month high. When comparing the bank card default rate among the four census divisions, the bank card default rate in the South is considerably higher than the other three census divisions. Upon further analysis to the South's three census regions, East South Central – comprised of Kentucky, Tennessee, Alabama, and Mississippi – has the highest bank card default rate.
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But our Economy is doing well....HA
ReplyDeleteMaybe its somewhat leveled off or on the rise, but 8...16 years of conflicts abroad has done its damage. No matter how much we want to make America great again, at minimum it will take 8...16 years to turn it around. Not 1, 4 or even 8 years.
Patience is not what any of us have, but we must dig very deep to find it and hang in there.
Worse is that now we have a Republican in the White House and the Tort laws regarding bankruptcy are even more unforgiving than usual.
ReplyDeleteAnother era of the rich preying on the poor. Keep the poor stupid by destroying their schools that way you can trick them into paying YOU and serving a lifetime of debt to get by.
ReplyDelete