The new “first time defaulter” is the takeaway from a recent survey by Deloitte. The major points:
• Individuals who have gone through at least one serious negative credit event in the last two years for the first time in their lives.
• 22% of Americans with bank accounts experienced a serious negative credit situation during the last two years. For fully 11%, this was a new experience — the first time in their lives they fell into delinquency. [Editor's note: 22% is a stunning number to me; 11% is not far behind in terms of shock value.]
• Unemployment and reduced income were the principal reasons why these individuals have failed to meet their credit obligations.
• Many first-time defaulters rated their interactions with lenders during their negative credit event as “poor.” This dissatisfaction may strongly encourage them to look elsewhere when borrowing in the future.
• If not for the economic recession, which has affected millions of households in America, many of the first-time defaulters might have remained in good credit standing.
Negative credit experience during the last 2 years (1st-time defaulters)
Credit experience segments
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.