source: http://www.fico.com/en/Company/News/Pages/09-26-2013-FICO-Labs-Data-Shows-17-Percent-Rise-in-Debt-Among-Late-Paying-US-Consumers-Since-2007.aspx
While most consumers are still reducing debt, those already behind on payments have piled on more since 2007 (17% more). According to the FICO report, total consumer debt has dropped, but those at the back of the debt treadmill are falling off the end. The credit system is structured so that the least creditworthy pay the highest rates. Once you get behind on payments, the system will grind you down.
The FICO report of a net decline in consumer credit is at odds with the Federal Reserve report which shows a not seasonally adjusted net increase of over $200 billion since 2008. The FICO report was based on credit records of about 19 percent of the population which is usually enough to be statistically valid. Both reports showed a big increase in student loan debt.
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