The Credit Cliff: Why Visa and Mastercard Are Bracing for Massive Defaults

#finance
#financement

We examine:

• The alarming rise in 90+ day credit card delinquencies
• Record-high U.S. household and credit card debt
• Why credit card interest rates above 20% are putting additional pressure on households
• Auto loan delinquencies and the growing subprime crisis
• The return of federal student loan defaults
• How student loan stress can spill into credit cards and auto loans
• The explosive growth of Buy Now, Pay Later and its “phantom debt” problem
• The emerging K-shaped American economy
• Why Visa and Mastercard are still performing strongly despite rising consumer stress
• How banks and card issuers are responding with higher reserves and tighter lending
• The potential impact of proposed credit card interest-rate caps
• Three predictions for where the consumer credit market could go next
• The key economic indicators you should watch in the coming quarters