Moody’s: US Credit Card Debt Indicators Continue to Weaken
Credit card charge-offs reached a record-high 7.74%, according to Moody’s.
Despite the level being essentially flat compared to a month ago, an increasing number of borrowers are falling behind on their credit card payments indicating that charge-off rates will almost certainly increase in the coming months.
“Additionally, the seasonal post-holiday rebound in payment rates did not materialize this January, leaving the payment rate index near a five-year low. The payment rate has been falling since early 2007. Yield and excess spread levels also showed softness during the month as the anticipated effects of recent issuer re-pricing initiatives have yet to materialize in trust performance.”
For details see: Moody’s: Credit Card Borrowers Under Continued Pressure In January.
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