Benchmark
Rich Americans Are Outstripping the Poor in Borrowing
The shift mirrors the growing income gap.
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Wealthy Americans aren't just pulling away from their poorer counterparts in income and wealth: They're also leading in borrowing for all categories except student loans, magnifying their advantage in purchasing power.
As earnings diverged and lending standards tightened in the wake of the financial crisis, Americans in top-earning zip codes have held increasingly more than lower-income individuals in mortgage, credit-card, and auto-loan balances, Federal Reserve Bank of New York research shows. That means the rich have gained greater ability to leverage their incomes to buy homes, cars, and merchandise.