Household Debt Hits $12.4 Trillion As Subprime Loan Delinquencies Hit Highest In 6 Years: NY Fed

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This is the continuing saga of debt buildup by US consumers. Total household debt rose $63 billion in this latest quarter to $12.35 trillion, driven by a $32 billion increase in auto loans, which also hit a record high of $1.1.4 trillion.

subprime-loans-on-the-rise

Subprime loans rise above pre-recession peak.

delinquency-rates

Subprime loans delinquency rises notably.

 

Here are some more highlights on auto loans:

  • delinquencies for auto loans highest in 6 years
  • 75% of subprime auto loans are made by auto finance companies
  • subprime loans, which contracted sharply during the recession, have returned and have now surpassed their recession peak in 2015.
  • delinquency rate has deteriorating notably for subprime loans in the past two years
  • roughly 6 million individuals at least 90 days late on their auto loan payments.
Full article: http://www.zerohedge.com/news/2016-11-30/household-debt-hits-124-trillion-subprime-loan-delinquencies-hit-highest-6-years-ny-

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