More Bailout Cash Won’t Stop Wave of Credit Card Defaults
As Congress negotiates a second Covid-19 rescue package, consumers warn they could soon be unable to make minimum payments.
This article is for subscribers only.
Despite the coronavirus and millions of jobless claims driving the U.S. economy deeper into recession, the flood of credit card delinquencies that some predicted has yet to materialize. Instead, card debt has actually gone down since the pandemic struck, with many consumers spending less while using bailout money to chip away at balances.
But that may not last. Even if Congress passes a new rescue package with more unemployment benefits, the cumulative effect of the ongoing economic catastrophe may finally trigger that default deluge, a new survey reveals.