Rising Consumer Pain Triggers Wall Street Concern: Credit Weekly
- Auto delinquencies are ticking up as savings dwindle away
- Rejection rates for credit card applications are rising
Shoppers exit a BJ's Wholesale Club location in the Queens borough of New York.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
US consumers, particularly those with lower incomes, are running into financial trouble as pandemic savings disappear, a headwind for lenders ranging from banks to asset-backed securities investors.
The credit outlook is expected to deteriorate later this year when almost 27 million borrowers have to resume making payments on student loans. Delinquencies for other forms of debt will likely rise, as people divert money away from servicing car loans and credit cards, according to Morgan Stanley economist Sarah Wolfe.