Delinquencies are on the rise
Non-Mortgage debt has been increasing across countries globally driven by demand and inflation. In the US, personal loan debt now accounts for 3% of non-mortgage US debt, compared to 2.6% a year ago. Also in the US, auto loans originated in April 2022 show increased early delinquency after 3 months on book across subprime, near prime and prime loans. In Australia, personal loan early delinquency (30+dpd) hit the highest level since the pandemic at 3.13%