Here's the disruption risk table by debt type in a capitalist economy:
| Debt Type | Share of Consumer Debt (%) | Mild Disruption Threshold (%) | Moderate Disruption Threshold (%) | Severe Disruption Threshold (%) |
|---|---|---|---|---|
| Mortgage | 70% | 5% | 10% | 20% |
| Student Loans | 11% | 10% | 20% | 30% |
| Auto Loans | 9% | 7% | 15% | 25% |
| Credit Cards | 6% | 10% | 20% | 30% |
| Personal Loans | 4% | 10% | 20% | 30% |
💡 Insights:
- Mortgage defaults are the most destabilizing due to their massive share and their ties to the banking and housing sectors.
- Student loans have a smaller market share, but widespread nonpayment would still strain federal budgets and depress consumer creditworthiness.
- Credit cards and personal loans, while smaller, have high interest rates and a rapid impact on financial institutions if default rates spike. Would you like this turned into a downloadable infographic or PDF for presentation use?