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Explore global credit and financial data insights. Delivering trends in credit risk, debt, utilization and delinquencies from around the world.
Executive Summary
Here are 3 top trends across the globe in 2023:
Hardship assistance helps consumers get back on track
In Australia, providers and governing bodies are actively collaborating to reduce the number of closed accounts, currently making up around 10% of accounts that enter hardship assistance programs. After declaring financial hardship, 70% of Australian credit card consumers maintain or improve their status, vs. 56% for mortgages and 52% for personal loans. Plus, the consumers with improved outcomes come off hardship assistance 50% faster.
Credit card delinquencies are on the rise
In the U.S., while recent economic indicators is reason for cautious optimism, a K-shaped recovery means that certain pockets of consumers will continue to face increasing financial stress. The number of consumers with at least one 30+DPD (days past due) delinquency increased from 4.4% in 2019 to 5.1% in 2023. In addition, credit card balances have increased 24% since 2019 while credit limits have increased by 26%. Credit limits and balances associated with 30+DPD increased by 41% and 46% respectively during this same timeframe.
Mortgage holders are feeling financial pressure from high interest rates
Upcoming mortgage renewals will be pivotal for many homeowners in Canada — consumers who locked in historically low interest rates, particularly those with substantial loan amounts, may face challenges in sustaining their payments. Mortgage delinquency rates over the last 12 months went up from 0.09% to 0.14%, a 52.3% increase with some regions surpassing pre-pandemic levels. Financially stressed mortgage holders have already started missing payments on credit cards and are now at a higher risk of insolvency.
