If unemployment over 13%, weekly jobless claims still over one million people, and a second-quarter GDP estimate of -40% weren’t enough to convince people that we’ve got a lot of economic pain still in front of us, maybe the latest figures from credit Bureau TransUnion will do the trick.
The firm estimates that 106 million credit accounts are in some sort of non-payment program such as deferral or forbearance, which is three times the number before the pandemic. Student loan accounts are biggest driver, with 79 million accounts in some sort of non-payment program.
The number of auto loans and personal loans in a non-payment plan doubled from April to May, showing that consumers were making hard choices as they faced economic hardship even though the federal government handed out more than $3 trillion to ease the financial pain.
It’s great that creditors are offering such programs, but they can only give consumers so much rope before they must demand payment because they have their own bills to pay.