Lenders saw a surge of borrowers skipping credit card or car loan payments in April, raising concerns that the coronavirus crisis will soon result in a wave of defaults. (Are You Surprised???)
Nearly 15 million credit cards were in ‘financial hardship’ programs in April, such as deferral programs that let borrowers temporarily stop making payments, according to TransUnion data reported by the Wall Street Journal.
Another three million auto loans were in hardship programs, or about 3.5 percent of car loans being tracked.
The dramatic rise is skipped payments comes as coronavirus lockdowns have put more than 35 million Americans out of work in the space of six weeks, with households across the nation struggling to pay their bills.