After Student Loan Payments Restart, 1.4 Million Americans Risk Defaulting on Debt
- Study sees sharp rise in delinquencies, including credit cards
- Lenders struggle to grasp true state of household finances
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The resumption of federal student loan payments will likely cause a spike in delinquencies on all kinds of household credit, including cards and personal loans, according to by TransUnion and the Boston Consulting Group.
As many as 1.4 million Americans could become seriously delinquent on at least one credit product in the next 12 months because of the financial pressure from student-loan payments, which resumed last month after a three-and-a-half-year pandemic freeze, the study found. Serious delinquency means a payment is overdue by at least 90 days.