The crude oil price slump is beginning to affect the finances of former US oil workers as rising unemployment levels in the energy sector continue to increase loan defaults and raise the risk of new losses for banks. A report by Credit Suisse said that a record number of borrowers are now defaulting on their loans because they cannot afford them. Credit card and mortgage borrowing, and car loans, are the areas of consumer credit most affected with an uptick in late repayments and home foreclosures starting to register for North Dakota, Texas and Oklahoma.
The crude oil price slump is beginning to affect the finances of former US oil workers as rising unemployment levels in the energy sector continue to increase loan defaults and raise the risk of new losses for banks. In the last two years approximately 119,600 oil and gas jobs have been eradicated throughout America, representing 22% of the global total, while US traded oil prices have decreased 28% since June 2015, according to the Federal Reserve Bank of Dallas. Credit card and mortgage borrowing, and car loans, are the areas of consumer credit most affected with an uptick in late repayments and home foreclosures starting to register for North Dakota, Texas and Oklahoma.