FOR IMMEDIATE RELEASE
November 9, 2023
CUNA Chief Economist Mike Schenk discusses loan delinquency trends in America in this month’s CUNA Economic Update. Schenk breaks down current metrics such as household debt as a percent of disposable income and the financial health of Americans.
“Credit unions tend to be more careful lenders. As not-for-profit cooperatives, owned by their members, they are less likely to make abusive loans and more likely to make loans in their members’ best interest.” – Mike Schenk
CUNA economists believe that delinquency rates will peak at 1% by the end of 2024. Net charge-off rates are also believed to be heading towards 70 basis points. Both forecasts are higher than long-term norms, but only modest in comparison to the Great Recession.
“The U.S. economy is not in recession at the moment. Experts say recessions are defined as a significant broad-based decline in economic activity that lasts for more than a couple of months. With the labor market as strong as it is, it is very difficult to say that this is a broad-based decline in economic activity.” – Mike Schenk
Credit Union National Association (CUNA) advocates on behalf of America’s credit unions, which are owned by more than 137 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
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