PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

More Alarms Ring for Credit Card Debt

Brian Riley by Brian Riley
October 31, 2017
in Analysts Coverage
0
American Express Introduces Enhanced Business Travel Account to Help Companies Manage the Reality of Business Travel - PaymentsJournal

Background from bank plastic cards. Figures on the card. Small depth of sharpness. Indoors. Horizontal format. Gray, green, yellow. Color. Photo.

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

This is not our first rodeo; metrics matter, and there is a coming bubble.

Today’s WSJ touches on the credit quality risk we’ve been talking about all year and points to factors beyond deteriorating credit card performance: savings are down, and expenditures are up.

  • The U.S. Commerce Department added two other notable data points on Monday.

  • It announced that the personal-saving rate was 3.1% in September, down from 3.6% the prior month and the lowest rate since December 2007.

  • And personal consumption expenditures, a measure of household spending on everything from washing machines to haircuts, increased a seasonally adjusted 1.0% in September from the prior month, the largest month-over-month gain in eight years.

If you are on the issuing side, you are most likely experiencing increased volumes.  In fact, if you have 2017 MBOs on credit losses, you might see a personal hit come April-Bonus time.  These two additional metrics, lower savings, and higher spending suggest that we will see a rough 2018 and you should negotiate the numbers into your financials.

  • A combination of several economic factors would have to “progressively worsen to hurt consumer loan performance,” wrote the S&P analysts.

Ladies and gentlemen, this is not rocket science.  Easy lending and high credit usage means trouble.  Add in some ancillary numbers like people saving less and record consumption and the result is certain.  As we have said before, Circle the Wagons.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

Read the full story here

Tags: Credit CardsDebt
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix