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Avg. American Household Has $8,284 in Credit Card Debt

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Moderator Emeritus

Re: Avg. American Household Has $8,284 in Credit Card Debt

FWIW that smaller than 100 bank deliquency graph, matches nearly 1:1 with when my Lending Club deep subprime portfolio fell apart.

 

Money was good for a while lending down there, and it's taking me time to unwind that, but even a 6% deliquency rate isn't that much of a problem: remember APR's are like 20+% in that strata and it can go up really high in some cases.  As a result I'm not really that concerned about it - to whit, I didn't lose that much money after it fell apart, it was just money that was suboptimally invested.

 

The smaller banks are the same frankly: when we start getting non-trivial default rates on lending portfolios that were expecting substantially less than that, then I'll get worried.




        
Message 21 of 22
Frequent Contributor

Re: Avg. American Household Has $8,284 in Credit Card Debt


@Revelate wrote:
The smaller banks are the same frankly: when we start getting non-trivial default rates on lending portfolios that were expecting substantially less than that, then I'll get worried.

I'm not a doom-and-gloom-sky-is-falling type of person, and the only reason I pay attention to the recession indicators is to know when it's going to be a good time to throw more cash into my index fund account. You make some good counterpoints.

27 FICO Scores + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.
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