Flashback to the Great Recession? Subprime Borrowing Now a Huge Concern

Along with other financial issues, subprime loans and the mismanagement of those loans by banks and insurance companies like AIG, helped lead to the Great Recession of 2007 to 2009.

Data mined from Equifax and Moody’s Analytics by Kobeissi Letter finds an increasing number of Americans are falling behind on their debt. Worse, the delinquency rate on subprime loans in the U.S. has risen to an alarming 10% of the nation’s total outstanding debt.

Subprime loans issues are the data’s most frightening statistics. Those loans are given to people with credit scores of 660 or below. The delinquency rate of these already high-risk borrowers has tripled since 2021.

Subprime debt at the present time is $2.7 trillion. It is 15% of the aggregate household debt in the U.S.

Source link: Benzinga — https://bit.ly/3PZfbMA