Red Flags and Black Marks
Generally, people are pretty good about paying their bills on time and managing
their credit. According to the Internet Web site www.myfico.com:
- Fewer than 4 in 10 consumers have ever been reported as 30 or more days
late on a payment.
- Only 2 in 10 have ever been 60 or more days overdue on a credit obligation.
- Fewer than 1 in 10 have had a credit account closed by the lender.
These promising numbers are balanced by other, more broadly-defined, analyses
that suggest higher levels of consumer debt will eventually lead to higher
delinquency and default numbers.
Through the 2000s, there has been steady unease among economists about these
higher debt levels making credit problems a big issue. So, in this chapter,
we’ll consider the warning signs that lenders look for and what happens
when people get behind in their credit debt.
Next: The Basic
Trouble Signs |
