The Amount of Consumer Credit At Risk Jumps In February

During the first quarter of the year, the factor that has significantly impacted credit performance has been unemployment. Unemployment – as well as underemployment – has a direct impact on not only consumer liquidity, but consumer credit risk as well.

To give ARM companies a monthly barometer of how bankruptcy and employment levels are likely to impact collections, Kaulkin Ginsberg has created the Consumer Default Risk Index (CDRI). This indicator shows the dollar amount of outstanding credit that is at risk of non-contractual default due to bankruptcy.