[Lendvo]

"Flows of credit card balances into both early and serious delinquencies climbed for the third straight quarter—a trend not seen since 2009."



http://www.calculatedriskblog.com/20...ing-grows.html

[mcaguru]

tough market

[MCAVeteran]

Credit card debt compounded now with a myriad of consumer loan company debt. Interesting to note in germany, there is no credit card debt. Rather personal installment loan debt. Will 50m consumers as lendingpoint mentioned in article be transferring cc debt or compounding cc debt with pers loan debt.

[Lendvo]

Credit card debt compounded now with a myriad of consumer loan company debt. Interesting to note in germany, there is no credit card debt. Rather personal installment loan debt. Will 50m consumers as lendingpoint mentioned in article be transferring cc debt or compounding cc debt with pers loan debt.

The #1 use of proceeds for Lending Club personal loans: to pay off credit card debt, of course nothing stops them from re-leveraging off those revolving lines.

The credit cycle will turn, it always does since eventually you run out of new credit in the system. We all just have to watch to see the signs when it actually does get rolling.

Importantly for this industry people might think they are doing a great job UW'ing (we do), but it is very hard to see what your defaults 'would' look like without all the other credit sloshing around in the system. When consumer defaults kick-up eventually credit gets cutoff and some of those merchants that paid you back fine before will lose those parachutes and your risk metrics won't be able to cope.