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Despite Record Surge In Subprime Car Loan Originations, US Household Debt Dropped In Q2: First Since COVID
['Tyler Durden']
ZeroHedge News
Something unprecedented happened in the second quarter: aggregate household debt balances declined by $13 billion, a 0.1% decline from Q1.
Auto loan balances rose by $28 billion (1.7%), and credit card balances increased by $21 billion (1.7%).
The notable thing here is the record surge in subprime originations (highest number of originations for sub 660 FICO applicants)...... which was largely the result of a surge in 30-50 year olds getting a new auto loan.
In case going NINJA on auto loans wasn't enough, along with record credit card balances, we saw a much higher jump in credit card limits.
And, ominously, as new delinquencies rise, the number of 90+ days delinquent loans are already near record highs for both credit cards, auto loans and student loans.