Household Debt Sets New Record and Delinquencies Rise

Bernice Napach in an August 14, 2019 article in thinkadvisor.com reports new records in household debt as reported by the New York Fed. She goes on to report that although the aggregate delinquency rates improved in the second quarter of 2019, two-thirds of the $604 billion of delinquent debt was seriously delinquent — 90 days or more overdue.

More loans on the books may seem like good news for credit unions as revenues usually increase. The rising delinquencies should warn credit unions that there are storm clouds ahead and they need to be careful when it comes to pricing and managing risk in their lending programs

TCT’s Risk Based Loan Pricing and Credit Migration Tools assure loan risk is managed and priced appropriately