Too Many Americans Unprepared for Financial Emergencies
In a September 25, 2019 article in bankrate.com, written by Adrian Garcia, it is reported that 40% of American families unprepared to weather a financial emergency such as a recession.
Many borrowers will not be able to pay their loans if they face financial stress such as a job loss which is common in recessions. Credit unions need to have risk management tools in place that serve as early warning whenever a borrower is showing signs of financial stress.
TCT’s Credit Migration tool assures loan risk is managed appropriately by reporting those borrowers showing signs of possible loan default long before those borrowers show up on delinquency reports.