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Cracks Show in Consumer Credit

Posted by Brent Luce on Jun 17, 2016 3:57:33 PM

Consumer Debt Defaults

Earlier this week, Synchrony Financial, a private-label credit card issuer, announced that it was increasing its guidance for charge-offs.  While the overall level of charge-offs is relatively low, this is one of the first tangible signs that the consumer might be weakening and that credit may be deteriorating after years of improvement following the 2008-2009 financial crisis.  Synchrony is the largest creditor for retail-store credit, so they are viewed as a bellwether for the industry as a whole.  There have been lots of fears circulating related to auto loans, credit cards and student loan debt, so this is something to pay attention to.  Heretofore, the U.S. consumer has been resilient.  Is this just a minor tick up or the beginning of trend reversal?  MORE:  Cracks Show in Consumer Credit -- WSJ 

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Topics: $AAPL, Stealth Bear Market, Consumer Credit

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