"SERIOUS DELINQUENCIES" SOAR AS HOUSEHOLD DEBT FROM AUTO / STUDENT LOANS BACK ABOVE 2008 CRISIS LEVELS

  • Total non mortgage debt was $2.7 trillion at the peak in 2008. Now it's over $3.8 trillion --- A  41% increase.
  • The big drivers: Auto Loans and Student loans.
  • “Non-housing balances, which have been increasing steadily for nearly six years overall, saw a $58 billion increase in the fourth quarter. Auto loans grew by $8 billion and credit card balances increased by $26 billion, while student loans saw a $21 billion increase”.
  • “As of December 31, 4.7 percent of outstanding debt was in some stage of delinquency. Of the $619 billion of debt that is delinquent, $406 billion is seriously delinquent (at least 90 days late or “severely derogatory”).
  • “The flow into 90+ days delinquency for credit card balances has been increasing notably from the last year and the flow into 90+ days delinquency for auto loan balances has been slowly increasing since 2012”.
  • Credit card balances back at their 2008 peak.

-- SOURCE: Sven Henrich via NorthmanTrader.com 

https://i1.wp.com/northmantrader.com/wp-content/uploads/2018/02/total-debt-1.png?ssl=1

The non-mortgage piece is particularly disturbing: