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Millions of Americans are missing payments on credit cards and car loans as the coronavirus pandemic squeezes consumers’ wallets, data shows. Nearly 15 million credit cards, or about 3.2 percent of the nation’s accounts, were in “financial hardship” status in April, according to figures from credit-reporting company TransUnion. That means the accounts were frozen, in …
Millions of Americans are missing payments on credit cards and car loans as the coronavirus pandemic squeezes consumers’ wallets, data shows.
Nearly 15 million credit cards, or about 3.2 percent of the nation’s accounts, were in “financial hardship” status in April, according to figures from credit-reporting company TransUnion. That means the accounts were frozen, in forbearance or had a deferred payment, among other factors.
The same was true for almost 3 million, or 3.5 percent, of the nation’s auto loans, according to TransUnion. Both rates saw dramatic increases from April of last year, when just 0.03 percent of credit cards and 0.5 percent of auto loans had hardships, the company said.
“While these programs are providing consumers with temporary relief, banks and lenders are looking for further regulatory guidance as to what next steps should be taken once stimulus packages dry up,” Matt Komos, TransUnion’s vice president of research and consulting, said in a statement.
Moreover, the share of credit card borrowers at least 90 days past due jumped to 1.87 percent last month from 1.78 percent a year earlier, the data show. And 1.3 percent of car loan borrowers were at least 60 days past due, up from 1.1 percent in April 2019.
The spikes came as lockdowns aimed at curbing the deadly virus put more than 20 million Americans out of work last month, squeezing many people’s ability to pay bills. The financial stress has also affected mortgage payments, with more than 4 million homeowners now in forbearance plans, according to the Mortgage Bankers Association.
