Towards the end of 2017 there was a significant spike in second mortgage and bank card defaults, according to a recent report. Experts are now pointing towards increased spending as the reason behind the spike.
"The second mortgage default rate climbed to 1.22% from 1.08% the previous month, and was nearly three times as high a year ago when it was 0.41%, according to Standard & Poor's and Experian," according to National Mortgage News.
"First mortgage default rates inched up month-to-month to an average of 0.68%, but were lower year-to-year."
While the unemployment and inflation numbers seem low, the increase spending has some consumers falling behind in managing their money. There is a strong possibility that this stabilizes over the next couple of months.
To learn more about the jump in second mortgage and bank card defaults, click on the image above.