PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Winter Holiday Buzz Kill: Keep the Card in Your Wallet or Purse

By Brian Riley
December 5, 2018
in Analysts Coverage, Credit
0
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
debt

debt

Household debt increased in 3Q2018, the 17th consecutive quarterly increase.  It might be hard to believe but household debt is now $837 billion higher than the pre-recession peak.

The Federal Reserve Bank of New York’s Center for Microeconomic Data’s Quarterly Report on Household Debt and Credit presents sad news based on the Feds consumer panel and anonymized Equifax credit data.

Growth comes where you probably do not want it…

  • Older borrowers now hold a larger share of total outstanding debt balances, while the shares held by younger borrowers have contracted and shifted toward auto loans and student loans.”

And Non-Housing debt increases across the board.

  • Outstanding student loan debt increased by $37 billion and stood at $1.44 trillion as of September 30.
  • Auto loan balances increased by $27 billion to $1.27 trillion in 2018Q3.
  • Credit card balances rose by $15 billion to $844 billion.

This is a good year for consumers to tighten their belts based on low salary growth, but based on forecasts by the National Retail Federation which suggests a 4.8% increase, consumers probably have not learned their lesson.

While my analyst hat says “happy holidays”, my credit manager’s hat hopes you keep that card in your wallet.

Flat income growth, steady debt increases, and an expectation of increased holiday spending: Ladies and Gentlemen, warm up your collection systems for 1Q19!

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

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: CreditDebt

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result