It is happening again.  All over America, borrowers are getting behind on their payments.  In particular, subprime borrowers are having a very difficult time paying the bills.  Does that ring a bell?  That should, because the last time we witnessed anything like this was during the last financial crisis.  When things start to go bad, those at the bottom of the economic food chain feel it first, and that is why the numbers that have been coming out lately are so alarming.

For example, the percentage of subprime borrowers that are at least 60 days behind on their auto loans reached 6.11 percent last month.

That figure is the highest ever recorded…

The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings.

"The subprime borrower is getting squeezed," said Margaret Rowe, senior director with Fitch.

Let this sink in for a moment.

We never saw a number this high during the Great Recession.

And we never saw a number this high during the COVID pandemic.

So this is really bad.

Credit card delinquency rates at small banks have also hit an all-time record high…

Credit Card Delinquency rates at small banks have reached 7.51%, the highest level ever recorded