top of page
Frank Tian

šŸ•µļøā€ā™‚ļø 7 At-risk Consumer Segments to Watch

Even with some good US data points:

  • July inflation drops to 8.5%

  • July added 528K jobs


The horizon is still cloudy with multiple risk factors.


For consumer lending, here are 7 segments worth special attention:


šŸ‘‰ Variable rate mortgage holders, especially subprime - were first to crack in the Great Financial Crisis.


šŸ‘‰ Home equity loan with a high Loan-To-Value ratio - the property value could quickly drop then the equity evaporates.


šŸ‘‰ Subprime auto loan holders - delinquency rates for this segment are steadily inching up.


šŸ‘‰ At-risk student loan holders - student loan payments are set to resume in September; 5 million borrowers are identified as at risk by CFPB.


šŸ‘‰ Those in previous forbearance programs - theyā€™ve shown vulnerable financial positions; some are still struggling with delinquency.


šŸ‘‰ Cash balance on the decline - such info is available for full-service banks or can be sourced via open banking data.


šŸ‘‰ Those who used credit cards and personal loans to purchase cryptos - many lost their real-world money as the crypto market crashed into the ā€œcrypto winterā€.


Any other segment you are watching?


šŸ”¹If you enjoy this post, consider receiving content like this in your inbox.

Recent Posts

See All

Auto Loan Update

šŸš— How is the auto loan doing in 2023 so far? Everything is up. šŸŸ¦ Auto Price Up The new car price index continues to climb in May, ...

Comments


bottom of page