Warning: Global Wave Index Has Peaked, Housing Bubble 2.0 Has Found Its Mortgage Rate Pin, Delinquency Rates On Store-Branded Credit Cards Have Reached A Seven-Year High…

Delinquency rates on store-branded credit cards have reached a seven-year high, according to credit bureau Equifax, possibly signaling broader troubles for household debt down the road.

The share of private-label credit cards with accounts at least 60 days delinquent is 4.65%, up from 4.08% in March 2017, Equifax said Wednesday. That’s the highest since early 2011, the credit reporting agency said.

Equifax blames the trend in part on consumers who mistakenly believe they can avoid paying their credit card bills when retailers go out of business, declare bankruptcy or close local stores.

“This is a huge mistake as the lenders behind the private-label cards are still reporting to credit bureaus, and the creditors to the retailer are keen to collect any outstanding accounts receivable toward their outstanding debts,” says Amy Crew Cutts, chief economist of Equifax. “The decision not to pay on these cards in the hopes that the retailer will forget them will haunt these consumers for a while and will impact their ability to take out credit in the future.”

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