Financial stress among US consumers is intensifying:



The delinquency rate on subprime loans is up to 10% of total outstanding debt, the highest in 11 years.

Subprime loans are those made to borrowers with a credit score below 660, meaning they were already considered higher-risk at the time of borrowing.

The delinquency rate has more than TRIPLED since 2021, when pandemic-era forbearance programs temporarily allowed borrowers to delay payments without being marked as delinquent.

By comparison, the delinquency rate peaked at ~19% during the 2008 Financial Crisis, when subprime debt was $3.5 trillion and made up ~30% of total household debt.

Today, subprime debt stands at $2.7 trillion, or ~15% of the total, still a significant proportion.

An increasing number of Americans are falling behind on their debt
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