Considering that around half the country is probably unemployed right now, it is not surprising to see that millions of people are no longer making their credit card and auto-loan payments.
WSJ:
Millions of people are behind on their credit-card and auto-loan payments, the latest sign of the coronavirus pandemic’s financial devastation.
Lenders in April had nearly 15 million credit cards in “financial hardship” programs, such as deferral programs that let borrowers temporarily stop making payments, according to estimates by credit-reporting firm TransUnion. That accounts for about 3% of the credit-card accounts the company tracks, TransUnion said Wednesday.
Nearly three million auto loans were in these hardship programs, accounting for about 3.5% of those tracked.
The numbers have surged from a year ago, when 0.03% of credit cards and about 0.5% of auto loans were in financial-hardship programs.
There is so much bad economic news that it is impossible to keep track of it all.
But what this is showing is that America’s economy was largely fueled by lots and lots of debt and this credit bubble is now imploding.
We also have unemployment numbers coming out tomorrow and we can probably expect another two to three million people added to the unemployment numbers thanks to this insane lockdown nonsense.
