Consumer debt is a significant concern in the United States, and auto loans and credit cards are two of the most important contributors to this problem. In Q3 of 2022, we see a historical chart of consumer auto loan debt in the U.S. that shows a continued surge in distress and default. This trend has been building up since early 2021 and is a cause for concern.
In addition to auto loan debt, credit card debt has also seen a decline in performance over the past year. This trend has been compounding for almost two years straight, making the situation even direr.
It's important to note that most of this non-performing debt is among newly 30-89 day late lines of credit. This means that consumers need to catch up on their payments and are at risk of defaulting on their loans. In Q3 of 2022, over $10 billion in debt was in this category.
As consumers, it's essential to be mindful of our spending and ensure we can keep up with our payments. This includes being aware of the interest rates and fees associated with our loans and credit cards and budgeting appropriately to ensure we can make our payments on time.
In conclusion, consumer debt is a significant concern in the United States, and auto loans and credit cards are two of the most important contributors to this problem. It's essential to be aware of the risks and ensure we take steps to manage our debt responsibly.